Microsoft Asks Federal Judge to Dismiss Antitrust Lawsuit

Microsoft asked a federal judge Monday to dismiss the landmark antitrust suit filed against it in May by the federal government and 20 states.

The filing, which was expected, came on the same day as reports that Microsoft co-founders Bill Gates and Paul Allen plan to sell a total of 2.5 million common shares of the software giant. Spokespersons for the Microsoft chief executive and Allen said the proposed sales, revealed in filings with the Securities and Exchange Commission, are part of a regular diversification program.

In its 88-page filing in U.S. District Court in Washington, Microsoft contended that its Internet Explorer browser is properly integrated with its market-dominating Windows operating systems based on clearly laid-out legal standards.

The Redmond, Wash.-based software giant also said in its filing that it has done nothing to prevent rival Netscape Communications from distributing its software through many channels to tens of millions of users.

Bill Neukom, Microsoft senior vice president for law and corporate affairs, said he hoped Judge Thomas Penfield Jackson would at least dismiss some of the government’s claims against the company to narrow the grounds for a trial scheduled to begin Sept. 8.

The federal and state governments have accused Microsoft of illegally maintaining its monopoly in personal computer operating systems and using that dominance to gain monopolies in other areas.