Article 9 of 523 Two states warn
Microsoft on monopolistic practices Dorothee Moisan
06/21/2001 Agence France-Presse
(Copyright 2001)
WASHINGTON, June 21 (AFP) - With an appeals court ruling
looming in the Microsoft antitrust case, two states involved
in the case are warning the software giant against efforts to
"maintain and extend" its monopoly through its newest
products, including the new Windows XP.
"We do have serious concerns about Microsoft's conduct and
practices in recent months," said a statement issued Wednesday
by Iowa Attorney General Tom Miller and Connecticut Attorney
General Richard Blumenthal.
The two states are among 19 joining in the federal
government's antitrust case against Microsoft, which resulted
in last year's court-ordered breakup, which is on hold pending
appeal.
A ruling in the appeal could come as early as Friday.
The statement by the attorneys general criticized
Microsoft's new Windows XP operating system to be launched in
October and its "HailStorm" standard for delivering Internet
services.
Microsoft was found in the earlier court case to have used
its near-monopoly position with its Windows operating system
to squeeze out competitors in other areas, and the two state
officials say the firm "may be repeating its efforts to
maintain and extend its monopoly more broadly to the
Internet."
The statement said the officials have no plans for a second
lawsuit, but noted, "We have found Microsoft's behavior to be
very troubling."
It said that if the appeals court sends the case back to a
lower court, the officials would bring up the new actions by
Microsoft.
"We would never completely rule out a new suit, but our
focus now is on the antitrust case that is already before the
court," the statement said.
Microsoft spokesman Jim Cullinan had no comment about the
court case or the statement by the attorneys general, but said
concerns about Windows XP have been overblown by critics and
competitors.
"We're disappointed that our competitors continue to spread
misinformation about our products and we're looking forward to
working with anyone that explains the benefits with Windows
XP," he said.
"Windows XP is causing great excitement in the industry
because it will unleash the potential and power of the PC.
Microsoft develops our operating systems with features and
functionality that consumers want and that exactly what we did
with Windows XP."
Analysts said the harsh comments from the state officials
suggest they plan to continue the legal battle against
Microsoft even if the court-ordered breakup order is
overturned.
"These two states feel like the decision is not going to be
favorable to them and they are threatening to file a new
lawsuit, and are indicating by this threat that they will take
it to the Supreme Court," said Nicholas Economides , a
New York University economist.
"The pressure they are trying to exert is not really on the
court by on the Bush administration."
President George W. Bush's administration has made little
comment on the Microsoft case, but analysts have suggested
they may be willing to drop the case, which was brought by the
Bill Clinton administration.
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