Judge Questions Microsoft Penalties

The judge in the Microsoft Corp. antitrust case questioned whether penalties proposed by nine states go beyond the wrongdoing found last year by a federal appeals court.

The states are demanding a “modular” version of Microsoft’s Windows personal computer operating system that would let computer makers remove the code for the Internet Explorer Web browser and other programs. The states, led by California and Iowa, want remedies that go beyond a proposed settlement reached by Microsoft and the Bush administration.

U.S. District Judge Colleen Kollar-Kotelly told state lawyer Steven P. Kuney the appeals court decision appeared much more concerned with simply letting computer makers hide those programs from computer users.

“The focus doesn’t seem to be on code removal,” the judge said. “What relief will removal of end-user access not provide you?”

Kollar-Kotelly must decide whether to approve the proposed settlement of the 4-year-old case or adopt the stricter remedies urged by the dissenting states.

Microsoft fell 13 cents to $54.75 on Nasdaq.