US decision to cheer Microsoft

The worlds largest software company, Microsoft, was relieved by a recent announcement by the US Justice Departments announcement that is was significantly narrowing its antitrust case against the company and dropping its pursuit to breakup of the software giant. This decision removes some doubts that Microsofts plans to ship its Windows XP software by the end of next month would be stymied.

Even though government lawyers said that they would request the courts for a strict set of penalties against the company, which could force Microsoft to open up its Windows XP operating system, the announcement brought relief to the company which has spent a lot of money and management energy fighting this case.

The Justice Department had attempted to break up the software giant on the grounds that Microsoft violated antitrust laws by forcing on consumers its Internet Explorer browser, which was being pushed free along with the Windows operating software.

The move was not entirely unexpected. Earlier, in June this year, a federal appeals court had given clear indications that it would not support trial judge, Justice Thomas Penfield Jacksons order breaking up the company. The same court had also made it more difficult for the government to prove its claim that Microsoft was tying its browser to its operating system.

The appeals court had condemned the trial judge for deliberate, repeated, egregious and flagrant violations of judicial standards of conduct. The court said that Judge Jackson's behaviour had "given rise to an appearance of partiality". It specifically mentioned his impermissible ex parte contacts, secret interviews with members of the media and numerous offensive comments about Microsoft officials.

The Department would, however, continue to pursue the courts for imposing other penalties on the software giant that could be modeled on the remedies ordered last year by trial judge Justice Jackson.