Friday November 2, 2:08 AM
Microsoft deal in antitrust case may lift cloud
A deal between Microsoft and the US Justice Department in their
antitrust case, if finalized, could help the company and the
technology industry by lifting the cloud from over the world's
biggest software firm, analysts say.
Published reports said Thursday that a tentative agreement would
not require Microsoft to disclose key technical data or redesign its
Windows software, but would give computer makers more power to
manage their desktop displays.
Government and company officials declined to comment on the
reports.
But Nicholas Economides, an antitrust expert at New York
University, said the reports indicate "a good settlement because it
deals with the problems in the way that the court of appeals
envisaged."
A US appeals court in June upheld a lower court finding that
Microsoft acted as an illegal monopoly but overturned an order that
the company should be broken up. The appellate judges also ordered a
new judge be named.
On September 6, the US government abandoned its demand for a
breakup of the software titan, saying it was hoping to speed up a
resolution of the case.
Economides said the reports indicate that the settlement would
include "specific ways to ensure that Microsoft does not abuse its
monopoly position," reflecting the more limited scope of the appeals
court decision.
"The remedy has to be based on (the appeals court ruling)," he
added. "It should not punish Microsoft for things it was not found
guilty of ... (the opinion doesn't say Microsoft should give out its
source code, it doesn't say Microsoft cannot include other things in
the operating system."
Economides added that the settlement "would also have a good
effect on the rest of the industry by removing the uncertainty that
the antitrust case has created."
Merrill Lynch analyst Henry Blodget said that while a settlement
would be a positive for Microsoft, "it would be premature to
conclude that the company's legal issues are behind it."
Blodget points out that the 18 states in the case -- each of them
co-plaintiffs -- could yet prove a thorn in Microsoft's side.
Reports claim the states are reluctant to lend support to the
deal.
But some Microsoft critics said the settlement would be too soft
on Microsoft and called on the government to reject it.
Ken Wasch, president of the Software and Information Industry
Association, said the settlement "stunningly, will not change either
Microsoft's business practices nor its software implementations one
iota," and rely on computer makers to offer diversity.
"The challenge posed by the proposed remedy is not merely
'wordsmithing' as reported in the press," he said.
"It's about a framework that is ineffective and inconsistent with
the law. It does nothing to promote competition and innovation
despite years of documentation to the contrary."
If settlement talks fail, US District Court Judge Colleen
Kollar-Kotelly will have to decide how to penalize Microsoft's for
its anti-trust violations. The judge has set a Friday deadline for
mediated talks.
Despite its antitrust woes, Microsoft launched the newest
incarnation of its Windows operating system, Windows XP, on October
25 in a splashy New York kickoff.
The stricken computer industry is hoping that XP -- with its
built-in capabilities to edit digital photos and videos, conduct
online meetings and play and record CDs -- will provide a spark to
ignite cooling sales.
More from > Tech News from
AFP
More from > Technology
|