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Antitrust Chief Defends Case Against Microsoft Before Committee

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From Bloomberg News

Justice Department antitrust chief Joel Klein on Wednesday defended the government’s case against Microsoft in testimony before the House Judiciary Committee and received bipartisan support, with some GOP criticism of the suit.

“Everyone would benefit from a toning-down of the rhetoric and a greater faith in the court system to come to the right resolution,” said House Judiciary Committee Chairman Henry J. Hyde (R-Ill.).

Senate Majority Leader Trent Lott (R-Miss.), Rep. J.C. Watts Jr. (R-Okla.) and others have accused the antitrust division of wrongly trying to bring down Microsoft.

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Some lawmakers have said Microsoft has spurred the tech boom, popularized PCs and created jobs.

Wednesday, John Conyers Jr. of Michigan, the ranking Democrat on the panel, questioned Microsoft’s lobbying and the political pressure on the antitrust division.

“We hope that there will not be those that will be using this case as a fund-raising cash cow, or attempt to intimidate the department’s law-enforcement efforts,” Conyers said.

Microsoft, its political action committee and its employees have contributed to lawmakers’ campaigns and both major political parties.

Rep. Joe Scarborough (R-Fla.) said he wouldn’t join what he called a judiciary committee “love fest” with Klein and Federal Trade Commission Chairman Robert Pitofsky, who also testified.

“If you looked at the polls . . . a majority of consumers in America disagree with you, and they believe that Microsoft is in the right here,” Scarborough told Klein. “I just don’t understand how you make the argument that it’s so horrible for consumers and the industry when the industry has exploded.”

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Afterward, Klein said he was pleased by the support he had received from committee members.

“I actually thought there was a clear bipartisan consensus that this case ought to proceed on the merits and the law and the facts, that it should be kept out of politics and political considerations,” Klein said.

Klein disputed press reports that the government was leaning toward proposing steps to curb Microsoft’s behavior, rather than break up the company.

“We are considering a variety of options,” Klein told reporters. “While other people may try to lean us in one direction or another, we are not leaning.”

U.S. District Judge Thomas Penfield Jackson has ruled that Microsoft illegally defended its Windows operating system monopoly, tied its Internet Explorer Web browser to Windows and sought to monopolize the Web browser market. The company has pledged to appeal Jackson’s ruling.

The government must submit proposed remedies by April 28.

Jackson is scheduled to hold a hearing on remedies May 24 and is expected to rule in June.

Redmond, Wash.-based Microsoft has denied breaking the law to protect the dominance of Windows. The company says it’s No. 1 because consumers like its products. Windows runs on 95% of the world’s personal computers.

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