Microsoft violated antitrust laws, rules judge

BANGALORE: Microsoft suffered a severe setback on Monday when Judge Thomas Penfield Jackson, hearing the antitrust case, ruled that the software giant had indeed violated several state antitrust laws.

"The court concludes that Microsoft maintained its monopoly power by anti competitive means and attempted to monopolize the Web browser market," U.S. District Judge Thomas Penfield Jackson wrote in a "conclusions of law" ruling that has been released.

Jackson also determined that Microsoft could be held liable under state anti competition laws; he accepted 23 of the 26 arguments presented by the 19 states that joined the federal government in the landmark case.

Monday’s ruling follows Jackson’s November finding of facts, which too was critical of Microsoft. Jackson is expected to issue a final ruling that will include the remedies or penalties to be imposed on Microsoft.

Microsoft has said it would request an expedited appeal process, which could put the case before US District Court of Appeals for the District of Columbia before the end of the year. Either of the party could also request that Jackson ask the Supreme Court to take the case directly. As proof of Microsoft's monopoly power, Jackson cited the company's dominance in PC operating systems. "Neither Microsoft nor its (original equipment manufacturing) customers believe that the latter will have--or will anytime soon--even a single, commercially viable alternative to licensing Windows for pre-installation on their PCs," Jackson said.

He ruled that Microsoft used its control of the market for software applications, such as word processors, spreadsheets and other programs, to protect its monopoly position in the operating system market. Jackson referred to Microsoft's "applications barrier to entry" as ensuring that "no Intel-compatible PC operating system other than Windows can attract significant consumer demand, and the barrier would operate to the same effect even if Microsoft held its prices substantially above the competitive level." Microsoft shares dipped sharply on the stock exchanges on Jackson’s ruling.