Microsoft monopoly "intact" despite antitrust ruling

 

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By Reuters

Posted on 31 Aug 2007 at 12:20

The ruling against Microsoft in 2002's landmark antitrust case has failed to reduce the company's monopoly say a group of state attorney generals, disagreeing with the assessment of US antitrust officials.

In its periodic review of the settlement, the US Justice Department said that Microsoft had lived up to the consent decree imposed by the courts restricting its conduct. It also claimed that the ruling had succeeded in promoting competition.

Although some elements of the settlement have been extended for two years, most of the provisions imposed on Microsoft expire in November at which time the attorney generals say Microsoft will once again use its market dominance to "crush" competitors.

"The remedies negotiated by the Department of Justice, and imposed by the court, have had little or no discernible success in restoring a competitive marketplace," says Connecticut Attorney General Richard Blumenthal.

Microsoft disagrees however, saying it will continue to live up to the settlement.

"The consent decree shaped how we view our responsibilities and led us to adopt a set of voluntary principles that will continue to apply, even after major parts of the US antitrust ruling expire this November," says Brad Smith, Microsoft senior vice president and general counsel, in a statement.

Earlier this year, Microsoft agreed to modify Windows Vista in response to a complaint that its computer search function put Google and other potential rivals at a disadvantage.

But Google doesn't believe this has gone far enough and has petitioned a federal judge to extend the consent decree in order to make sure consumers have a "truly unbiased choice" of desktop search products.