Tesla's Optimus Robot Everything From Tesla AI Day Bella Hadid's Spray-on Dress Hasbro's Indiana Jones Toy 'Hocus Pocus 2' Review AirPods Pro 2 Discount Meal Delivery Services Vitamins for Flu Season
Want CNET to notify you of price drops and the latest stories?
No, thank you

Year in review: Not surviving but thriving

Even with one arm tied behind its back, Microsoft proved once again that it never backs down from a fight.


Not surviving, but thriving
Facing a court-ordered breakup, Microsoft still comes out ahead

Even with one arm tied behind its back, Microsoft proved once again that it never backs down from a fight.

The company started the year with a federal judge's ruling ringing in its ears: You are an abusive monopoly that should be broken into two.

Undaunted, Microsoft continued to build controversial features (Smart Tags, photo editing and music playback) into its upcoming OS pending a decision on its appeal. The verdict: Microsoft is a monopoly but breaking it up would be extreme.

Within weeks, the company introduced Windows XP, accompanied by new music from Madonna and concern from some consumers over registration and licensing changes.

On the other hand, Microsoft was confronted with some nagging security issues, including a massive outage that darkened its Web properties for days and a boisterous debate about its role in allowing worms like Code Red to spread.

By year-end, however, a favorable settlement was at hand, XP, Xbox, Office XP and Office X for Mac were sitting on retail shelves, and .Net was just getting rolling.

What kind of year did your company have?

Click here to Play
 Microsoft settlement: Pro or con
Jonathan Zuck, president, Association for Competitive Technology, and Chris Murray, Internet & Telecom Counsel, Consumers Union
November 2, 2001


Appealing to a higher authority (and winning)
An appeals court agrees that the company is a monopolist, but sends an order to break up the software giant back to a lower court. Part of the reason: the trial judge "seriously tainted the proceedings."
June 29, 2001
States get tough in Microsoft case
Nine states and the District of Columbia file a remedy proposal that could upset the momentum of a settlement hammered out between Microsoft, the Justice Department and nine other states.
December 7, 2001
Microsoft cuts another deal
The company reaches an agreement that would dismiss more than 100 pending private antitrust cases by donating software, services, training and software licenses for reconditioned computers.
November 20, 2001
These guys play for keeps
Entering a video game market dominated by major contenders, Microsoft's powerful hammer--Windows--is of little use. But like Mario and Luigi, the software giant has a few not-so-secret weapons.
November 15, 2001
New OS raises hopes, concerns
You may buy Windows XP because it offers nifty tricks for editing photos and music. Microsoft surely wants the revenue, but has much grander ambitions for its latest OS. Can you say dot-Net?
October 17, 2001
Code Red is red alert for Microsoft
While network administrators wait and prepare for another round of attacks from the Code Red worm, the software giant is drawing much of the blame for the pernicious infection.
July 31, 2001
Microsoft Web sites unplugged
An employee makes an error and attackers exploit the weakness to extend the outage several days. Not a good week for a company that just launched an ad campaign with the slogan "software for the agile business."
January 25, 2001
Company "incredibly sorry" about goofed fix
Microsoft contritely acknowledges that its second attempt to fix an Exchange security hole went awry. The second attempt at a software patch included a catastrophic bug that caused many servers to hang.
June 13, 2001

• Survey: Anger at Microsoft's new licensing
• Microsoft customers balk at license changes
• Microsoft eases costly license change
• Microsoft: It's Office XP or bust
• Privacy group details complaints against XP
• Microsoft's XP: Hardware changes a turnoff
• Rivals, others lament Microsoft deal
• Microsoft tries to cage security gremlins