Witness May Hurt States’ Microsoft Case

Nine states’ quest for tough antitrust restrictions on Microsoft Corp. suffered a serious blow when an economist didn’t endorse their bid for a stripped-down version of the Windows operating system, experts say.

Economist Carl Shapiro, the states’ final witness, will complete his testimony as court hearings enter their fifth week. The No.1 software maker will present testimony supporting a settlement it negotiated to end a 4-year-old antitrust suit by the U.S. government.

Witnesses this week will include economist Kevin Murphy, the company said.

Shapiro, a University of California professor, said the accord does little more than bar Microsoft from repeating illegal actions. He backed other antitrust remedies offered by the states, but his reluctance to endorse their demand for a version of Windows from which computer makers could remove programs such as Explorer hurt the states’ case, experts say.