 |
US Appeals Court Reverses Microsoft Breakup
A unanimous federal appeals court on Thursday overturned the court-ordered breakup of Microsoft but ruled that the software giant violated antitrust laws. In a rare rebuke, the appellate judges said the trial judge ``seriously tainted'' the case with his derogatory comments about Bill Gates and his empire.
In a 7-0 ruling, the U.S. Court of Appeals for the District of Columbia Circuit set aide the breakup order, narrowed the antitrust case and sent it to a new judge to decide whether a breakup or some other penalty is warranted for the software giant.
Although U.S. District Judge Thomas Penfield Jackson engaged in serious misconduct, the appeals judges said, ``We agree with the District Court that the company behaved anticompetitively ... and that these actions contribute to the maintenance of its monopoly power.''
Though its legal troubles aren't behind it yet, Microsoft's stock shot up, as did the spirits of company executives. They pressed ahead with plans for their new Windows XP operating system and Internet services with a promise to pursue settlement talks.
``Every company must have the ability to innovate and improve its products,'' Gates said from the company's Redmond, Wash., headquarters. But the world's richest man conceded, ``The legal process can be hard on anyone who goes through it.''
As for settlement talks, Gates said: ``It's absolutely worth making an effort there.''
The Justice Department and state attorneys generals who brought the case also found victory in the conclusion that Microsoft operated an illegal monopoly. But the government and states might still appeal to the Supreme Court, try to negotiate a settlement or go back to the lower court to seek new penalties.
Political pressure mounted for the Bush administration to seek a settlement.
In This Section
|