SEATTLE: Microsoft Corp. chairman and co-founder Bill Gates said on Thursday
that an appeals court decision that reversed an earlier order to break up the
world's largest software company will allow it to move ahead with its plans for
new products.
Microsoft Corp. said on Thursday that it was pleased with a US appeals
court's reversal of a proposed breakup of the software giant, saying the ruling
would give it good standing in any retrial. But the software giant, which was
sued by the US Justice Department and 19 states for allegedly using its Windows
operating system monopoly illegally, also indicated it was ready to head to the
bargaining table for a settlement.
Gates, speaking at a press conference at the Redmond, Washington
headquarters, said he was pleased with the decision, and said it opened the door
to a possible settlement of the antitrust case, which has dogged the company for
four years.
"With this ruling, there is a new framework and so it would be a good
time for all parties involved to sit down together and see what kind of
resolution can be worked out," he said. "I won't rate the chances of
that in advance, but I'd say that the fact that this narrows the case quite a
bit and some of the key principles laid out in the decision make me think that
it's absolutely worth making an effort there," he added.
Gates, answering reporters questions about the effect of the decision on
Microsoft's upcoming release of its new operating system Windows XP, said there
was nothing to stop the company from releasing the software as planned. "We
are moving ahead with Windows XP as a product that has the features that
consumers want," Microsoft Chairman Bill Gates said. "There's nothing
in today's ruling that changes our plan for our future products, including
Windows XP."
Both Gates and Jeff Raikes, a top executive at Microsoft, said that the
ruling was met with a sense of relief. "I'm sure you'll understand, living
in Seattle, the feeling of the sun breaking through the clouds," said
Raikes, vice president of productivity and business services. "All of us
here at Microsoft see this ruling as the sunshine we have been waiting
for."
"It is an endorsement of the right to go forward with innovations that
consumers want and the removal of the cloud of breakup," he said.
Microsoft pleased with ruling, eyes settlement
"Today's ruling drastically narrows the case and removes the breakup
cloud from the company. We will continue to work to resolve the remaining issues
without the need for continued litigation, which benefits no one "
Microsoft spokesman Jim Cullinan said.
Both sides claimed victory, but the stock market was clearly on Microsoft's
side. Its stock ended Thursday higher while shares of key rivals fell. After
being halted most of the day, Microsoft shares ended up $1.60, or 2.3 percent,
at $72.74 in a burst of trading that briefly overwhelmed Nasdaq's systems.
The US Court of Appeals for the District of Columbia ordered that a new lower
court judge look at whether Microsoft illegally tied its Internet browser to
Windows to maintain its monopoly, a question that could have implications for
Windows XP, the upcoming version of the operating system.
The seven-judge appeals panel agreed that Microsoft holds a monopoly in
personal computer operating systems and that some of its competitive practices
amounted to illegal use of that monopoly.
The court also ordered that a new lower court judge look at whether Microsoft
illegally tied its Internet browser to Windows to maintain that monopoly, a
question that could have implications for future versions of the software that
bundle in other features.
But it overturned a ruling by the lower court judge, Thomas Penfield Jackson,
that Microsoft had tried to monopolize the Web browser market. Microsoft said
the bulk of the appeals ruling was positive and supported its argument that it
has the right to keep adding features to Windows.
(C) Reuters Limited 2001.