08:10 PM ET 09/14/98
Microsoft rebuffed as judge orders antitrust trial
By David Lawsky
WASHINGTON (Reuters) - A U.S. federal judge ruled Monday
that Microsoft Corp. must face a trial on Justice Department
allegations that it illegally preserved and tried to extend a
monopoly, rejecting attempts by the world's leading software
company to get the case dismissed.
Federal District Court Judge Thomas Penfield Jackson set
Oct. 15 as the date to begin the landmark antitrust trial,
endorsing an agreement between Microsoft and the government to
delay the case by three weeks.
The Justice Department and 20 states have assembled numerous
allegations and all of them are to be heard.
But Jackson dismissed a separate charge that had been made
by the states. He said U.S. antitrust law did not support their
allegation that Microsoft was prohibited from leveraging
monopoly power to compete in another market.
Even so, there is much to consider at the trial. ``Because
numerous issues of material fact remain in dispute as the record
presently stands, the court will deny Microsoft's motion for
summary judgment,'' the judge said.
In his 26-page opinion, Jackson took note of a U.S. Court of
Appeals decision earlier this year that had reversed him in a
separate Microsoft case.
At issue was whether Microsoft had the right to combine its
Windows operating system with its Internet browser under terms
of a 1995 agreement between the Justice Department and the
Redmond, Wash.-based software company.
The Justice Department had argued the company was forcing
the browser on computer makers and in violation of the
agreement.
Microsoft argued it had combined its Web browser and its
operating system into a single, integrated product.
That issue will be considered again in this trial. The
appellate court cautioned that lower courts should be ``wary of
second-guessing the claimed benefits of a particular design
decision.''
But Jackson said he needed more information to decide
whether there are special benefits to having Microsoft combine
browsing capability with its Windows operating system.
Jackson's decision was a mixed one for Microsoft and pleased
the government.
``We are very pleased by the court's decision and are
looking forward to the upcoming trial,'' a Justice Department
official said.
Microsoft spokesman Mark Murray said that although the
company was ``disappointed that the court did dismiss the entire
case, we're pleased that the court narrowed the lawsuit by
dismissing one of the (20 state) governments' claims.
Murray said Microsoft believed the facts were on its side.
The next hearing on the case was set for Thursday.
^REUTERS@
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