Microsoft Appeal Rejected
The U.S. Supreme Court rejected a plea Tuesday by Microsoft Corp. to intervene in the long-running antitrust suit, putting the fate of the software company squarely back in the hands of a federal judge who is urging the parties to settle.
The high court, without comment, refused to hear the Microsoft case, ending the Redmond, Wash.-based company’s hopes of winning a new trial.
Legal experts had considered Microsoft’s Supreme Court appeal a longshot and were not surprised by the decision.
“We had hoped, based on the strength of our petition, that ours would be one of the few that the court would review this term,” said Microsoft spokesman Jim Desler. “We’re disappointed, but we will continue to move forward with the case at the district court level.”
Government officials expressed satisfaction with the ruling.
“We are not surprised the Supreme Court did not take up the matter, because the decision by the D.C. Court of Appeals was unanimous and very well-reasoned,” said Iowa Atty. Gen. Tom Miller, who represents 18 states that joined the U.S. Justice Department in filing the case.
All sides are meeting daily to discuss a potential settlement of the case, complying with a recent court order by U.S. District Judge Colleen Kollar-Kotelly, the new judge overseeing the case.
But the parties remain far apart in their proposals about how Microsoft should be penalized for violating federal antitrust laws.
Microsoft is seeking a narrow remedy that addresses only the improper conduct highlighted by a June 28 appeals court ruling.
The government is seeking a set of broader conduct restrictions to reduce the software company’s influence over computer makers and software developers. In the past, Microsoft has used its monopoly on computer operating systems to dictate terms that hindered competition, according to the June 28 ruling.
Another point of contention in settlement talks is Microsoft’s new operating system, Windows XP. Antitrust officials worry that XP will enable Microsoft to leverage its monopoly into new markets, such as media players, instant messaging and e-commerce.
If a settlement is not reached by Friday, the judge said she plans to appoint an independent mediator to oversee talks. If no agreement is reached by Nov. 2, the case will proceed to trial in March.
In its Supreme Court appeal, Microsoft had argued that it is entitled to a new trial because the previous judge, Thomas Penfield Jackson, violated judicial ethics by holding secret meetings with reporters to discuss the case. If Microsoft had learned about the judge’s actions, it would have immediately sought a mistrial and a new judge, Microsoft attorneys argued.
Jackson’s conduct was harshly criticized by the federal appeals court, which removed him from the case and threw out his breakup order, which would have split Microsoft in two.
But the appellate panel declined to throw out the entire case and upheld many of Jackson’s findings that Microsoft illegally undercut rivals and bullied computer makers.
The Supreme Court’s refusal to hear the case marks the second time the court has declined to get involved in the Microsoft lawsuit.
Last year, the Justice Department asked the Supreme Court to fast track the appeal of Jackson’s original decision by accepting the case directly and bypassing the appeals court. The Supreme Court declined.
Future Supreme Court appeals still are likely.
Though a Microsoft spokesman said Tuesday that the company has no plans “at this point” to appeal other issues in the case, company attorneys have suggested that they may ask the Supreme Court to reconsider additional aspects in the future. The final remedy will be subject to appeal if either Microsoft or government officials are unhappy with the outcome. That could push final implementation of the final court-ordered remedy to more than two years away, legal experts said.
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Microsoft Antitrust Case
The U.S. Supreme Court rejected Microsoft’s appeal of its antitrust case Tuesday. That clears the way for U.S. District Judge Colleen Kollar-Kotelly to impose penalties on the software giant for illegally protecting its Windows monopoly. Here’s a look at key upcoming dates in the case.
Oct. 12: If parties have not settled the case, Kollar-Kotelly will appoint a mediator.
Nov. 2: Deadline for court-ordered settlement talks. If no agreement is reached, discovery for trial begins.
Dec. 7: Government must present its proposed punishment.
Dec. 12: Microsoft must present its proposed punishment.
March 11: Trial begins.
Source: U.S. District Court
