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Judging Microsoft: It's not over yet

The company still faces the threat of legal liabilities and orders to change its business practices.

CNET News staff
4 min read
 
 
A breakup is avoided, but monopoly charges remain

By CNET News.com Staff
June 29, 2001, 10:35 a.m. PT

In a 125-page decision, an appeals court sends an order to break up the software giant back to a lower court. The appeals court also rules that the trial judge, Thomas Penfield Jackson, "seriously tainted the proceedings" and should be removed from the case.

Victory fleeting for Microsoft
news analysis So solid is the government's remaining case that no matter what happens next, Microsoft will be forced to change how it conducts its business, legal experts say.
June 29, 2001

Appeals court: No breakup
An appeals court vacates an order calling for a breakup but also determines that Microsoft illegally maintained its monopoly in operating systems.
June 28, 2001

Jackson in the hot seat
Judges take Thomas Penfield Jackson to task for comments made outside the courtroom--a rare view of a conflict within the ranks of the federal judiciary.
June 28, 2001

XP in the cross fire
Bolstered by Thursday's court ruling, Microsoft critics are demanding changes to the Windows XP operating system.
June 28, 2001

Microsoft still in charge
The company has forged ahead with new products and bundling strategies. But an appeals court decision could slow its plans.
June 28, 2001

New judge to be selected randomly
U.S. District Judge Thomas Penfield Jackson's removal from the Microsoft antitrust case means the proceedings will fall to one of 14 available jurists in the same District Court.
June 28, 2001

Wall Street: Decision a "catalyst"
Analysts say a "cloud has been removed" and the appeals court's decision could give Microsoft stock a boost.
June 28, 2001

Tech industry sounds off
The court's ruling delivers a mixed message to industry executives, lobbyists and observers.
June 28, 2001

Netscape: A look back
The scrappy upstart dreamed of using its Web browser to loosen Microsoft's grip on the desktop, but its star has long since been eclipsed.
June 28, 2001

What the ruling means
FAQ CNET News.com addresses key questions about the appeals court's decision not to break up software giant Microsoft.
June 28, 2001

Full text of court ruling
The U.S. Court of Appeals for the District of Columbia Circuit examines the Microsoft appeal and recommends action in this 125-page document.
June 28, 2001

 Perspectives  
A consumer win
Attorney C. Boyden Gray says by affirming the right of software developers to innovate, consumers will continue to benefit from a competitive marketplace.
   
Why it's no victory
Trade association President Ken Wasch says Microsoft's pattern of behavior must be broken if we are to restore competition and innovation.
 

News.com video  
Click here to Play

 Gates: Antitrust years "challenging"
Bill Gates, chairman, Microsoft

 Attorneys debate antitrust ruling
Dana Hayter, antitrust attorney, Fenwick and West
Don Falk, antitrust attorney, Mayer, Brown, and Platt

 Case won't break Microsoft's stride
Jeff Raikes, group VP, Microsoft

 DOJ hails monopoly findings
John Ashcroft, U.S. attorney general

 Redmond still in hot water
Mike Pettit, president, ProComp


Recent court dates  
Sept. 26, 2000
The Supreme Court rejects the Microsoft appeal, sending it to the U.S. Court of Appeals for the District of Columbia Circuit. The appellate court moves quickly, ordering Microsoft to file a proposed appeals schedule within a week.

Nov. 3, 2000
America Online joins several technology trade groups in filing a pro-government brief in the appeal.

Nov. 27, 2000
Microsoft files a stinging legal brief attacking numerous points of Jackson's ruling and questioning the judge's courtroom procedures and objectivity.

Feb 13, 2001
Microsoft unveils Windows XP, its new operating system that includes new digital media and other features that once again raise concerns over "tying"--a claim that has been at the heart of the company's antitrust case.

Feb. 26, 2001
The appeals court begins oral arguments in the case, questioning lawyers for Microsoft and the DOJ, with one judge expressing doubt about Jackson's findings of fact in the case while others argue that the findings are binding on the court.

Feb. 27, 2001
Questioning continues, with several judges coming down particularly hard on Jackson, accusing him of issuing unclear decisions and saying his post-trial comments critical of Microsoft suggest bias.

June 28, 2001
The federal appeals court unanimously vacates the order to split Microsoft into two companies and sends the decision back to the lower court. In addition, the court determines that the case should be heard by a new judge rather than by Jackson.

Click here for full timeline.

Editors: Scott Ard, David Becker, Aimee Male, Jeff Pelline, Mike Ricciuti, Jon Skillings, Jennifer Balderama
Art: Ben Helm, Jeff Quan, Ellen Ng, Melissa Parker
Production: Mike Markovich