States get the go-ahead to pursue tougher remedies

 

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By Matt Whipp

Posted on 16 Apr 2002 at 16:21

A Microsoft ploy backfires.

A Microsoft ploy to get the case for more stringent penalties to be thrown out of court has backfired today, with the US Department of Justice (DoJ) saying that it would allow the nine states to pursue harsher terms.

'The non-settling states may pursue relief in their separate case,' it said, justifying the court's right to determine alone what penalties apply by adding: 'It is the court's exercise of equitable discretion that must provide protection from these dangers.'

Nine of the 18 states arguing the four-year-old case had agreed a settlement last June with the DoJ and Microsoft. The remaining nine - believing the proposed settlement didn't go far enough - are trying to have a harsher and broader settlement imposed.

Microsoft questioned the authority of the nine states to argue penalties applicable to national antitrust laws. The judge asked the US Justice Department to comment on Microsoft's views, perhaps indicating she considered there might be some ground to Microsoft's argument. The DoJ's response, however, is unequivocal. Indeed, the New York Times reports that DoJ lawyers were scathing about the proposed remedy to which the department had originally agreed, saying that it 'may harm consumers, retard competition, chill innovation.'

The court trades places today, as the CEO of AMD, the first of Microsoft's witnesses, takes to the stand.