[wordup] US U-turn on Microsoft break-up

[Adam Shand]

why is it that in all the news i read these days everything bad starts
with "and today the bush administration ...".

From: http://news.bbc.co.uk/hi/english/business/newsid_1529000/1529036.stm

US U-turn on Microsoft break-up
Thursday, 6 September, 2001, 17:13 GMT 18:13 UK

The US Department of Justice has announced that it will no longer push to
have software giant Microsoft broken up.

The decision by the Bush administration reverses the Clinton White House
legal strategy against Microsoft.

The Justice department said that the decision in order to shorten the
court proceedings and protect consumers.

Microsoft has been locked in a court battle with the US Government over
anti-trust claims for the past three years.

The government's about-turn on demands for Microsoft to be broken into two
companies - one for its Windows operating system and one for its other
business and home software - is a victory for Microsoft.

But although the DoJ says it is no longer actively seeking a break-up, the
court could still decide that this is a necessary solution to establish
fair competition.

Browser controversy

In June this year the Appeal Court in the US accepted the original
judgement, made in June 2000, that Microsoft's business practices had
violated anti-trust laws.

But it threw out the remedy - a break-up into two separate companies -
because it said media interviews by the previous judge could be seen as
showing bias against the company.

District Court Judge Colleen Kollar-Kotelly was appointed by random
selection earlier in August, and has ordered the two sides to report by 14
September on what issues remain outstanding.

The DoJ has also said that it had dropped further action on its complaint
about the web browser being tied into Windows.

The fact that Microsoft unfairly tied its Internet Explorer web browser
into the Windows operation system was the original complaint of the DoJ.

Speeding it up

The DoJ is trying to streamline the case with the goal of securing an
effective remedy as quickly as possible.

The U-turn on strategy was not completely unexpected.

During testimony in Congress the attorney-general, John Ashcroft, hedged
when questioned by senators about the government's commitment to pursuing
the lawsuit against Microsoft, saying that many issues needed reviewing.

Mr Ashcroft's department now says the government "believes it has
established a basis for relief that would end Microsoft's unlawful
conduct, prevent its recurrence and open the operating-systems market to
competition."

Threat to Windows XP?

The DoJ will ask the court for a period of discovery to investigate
developments in the industry since the trial concluded, and evaluate
whether additional conduct-related provisions are necessary.

And it has already confirmed that it will seek to stop Microsoft from
making certain exclusive deals with partners.

It will also try to force computer manufacturers to keep specific icons
and programmes on the Windows desktop.

The proposed restrictions could have a large impact on the Microsoft's
latest software, Windows XP, according to Howard University law professor
Andy Gavil.

Windows XP is due to be launched in October.

"It's hard to square the interim remedy with Windows XP," Mr Gavil said.

"All of these little things really have to do with how XP is being
prepared and marketed."

Mr Gavil said the Justice Department's action means the case could move
more quickly and is more palatable to Bush appointees.

"Rather than fight the battle over breakup, get down to the brass tacks
over how we can change their conduct now in a way that will preserve some
competition in the marketplace," he said.

"It is probably more philosophically agreeable to the administration."