Microsoft Loses Bid to Delay Antitrust Case

The Microsoft Corp. antitrust battle is headed back to U.S. District Court next week following an appeals court ruling Friday that rejected the software giant’s bid to delay the case pending its longshot appeal to the U.S. Supreme Court.

The U.S. Court of Appeals in Washington turned down Microsoft’s plea for a minimum six-week delay, saying the Redmond, Wash.-based company failed to “demonstrate any substantial harm that would result from the reactivation of proceedings.”

The appeals court, which unanimously ruled June 28 that Microsoft violated federal antitrust laws, also took a slap at the legal arguments the company made in its Supreme Court appeal, stating, “It appears that Microsoft has misconstrued our opinion.”

The decision is a victory for government prosecutors and sends the long-running case back to U.S. District Court in seven days to determine how Microsoft should be punished for bullying computer makers and undercutting rivals. A new federal judge could be assigned as early as next week, court spokesman Joseph Alexander said.

“We are pleased with the court’s decision, and we look forward to proceedings in the District Court,” said Gina Talamona, a spokeswoman for the Justice Department, which is pressing the antitrust case along with 18 state attorneys general.

Government attorneys have been pushing to expedite resolution of the case, saying the uncertainty is bad for consumers and the technology industry.

Microsoft had argued that it was more practical to wait until the Supreme Court made a decision.

“We’re prepared to move ahead with getting the remaining issues in the case resolved while we await word on the Supreme Court review,” Microsoft spokesman Jim Desler said.

Microsoft asked the Supreme Court this month to throw out the June 28 ruling and grant the company a new trial because the previous judge, Thomas Penfield Jackson, improperly discussed his views about the case with reporters and made negative comments about Microsoft.

The appeals court upheld key components of the government’s case but threw out Jackson’s order to split Microsoft into two companies, partly because of Jackson’s misconduct.

Experts are skeptical that the Supreme Court will agree to hear the case. A decision is expected by early October.

Microsoft critics accuse the company of using the appeals process to delay the case, particularly as Microsoft prepares to launch its Windows XP operating system this fall.

“It is regrettable that Microsoft continues to ignore the overwhelming evidence and findings against it and presses the courts in an obvious attempt to forestall any serious discussion of remedies,” said Ed Black, president of the Computer & Communications Industry Assn., a trade group representing technology companies opposed to Microsoft.

Some critics have encouraged the government to go to court to block the release of Windows XP, which they fear will allow Microsoft to leverage its monopoly into new markets, such as instant messaging and media players. But the government has no plan to take such a step, government sources said.

Supporters of the software company say Microsoft’s rivals, including AOL Time Warner Inc. and Sun Microsystems Inc., are using the government’s lawsuit to their own advantage.

“We must not hold technology entrepreneurs hostage while huge competitors use the courts to punish their rivals,” said Vince Sampson, spokesman for the Assn. for Competitive Technology, a pro-Microsoft organization.

Depending upon the schedule of the new judge, hearings could begin by the end of the month, attorneys said.