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Microsoft Anti-Trust Rulings Due Tomorrow

ewhac writes "The Associated Press is reporting that Judge Colleen Kollar-Kotelly will deliver her opinions on the Microsoft anti-trust suit tomorrow, after close of markets. Much speculation revolves around whether she will approve or reject the settlement negotiated by the Justice Department. Should she reject it, she can only offer suggestions for improvement; she cannot impose amendments. Watch this site for further developments :-)." Reader acacia points out that the opinions should be posted at this site, if you want a quick bookmark.

23 of 523 comments (clear)

  1. The missing element: by intermodal · · Score: 5, Insightful

    how they intend to enforce the judgement. Try keeping tabs on the biggest information company in the world and you'll see where the problem lies.

    --
    In SOVIET RUSSIA... erm...NSA AMERICA, the Internet logs onto YOU!
    1. Re:The missing element: by guttentag · · Score: 5, Insightful
      how they intend to enforce the judgement. Try keeping tabs on the biggest information company in the world and you'll see where the problem lies.
      The DOJ isn't going to enforce anything where MS is concerned because the company bought the Bush administration. It shouldn't have to babysit Microsoft anyway.

      Microsoft's PR goons work hard to broaden this topic to derail any conversation non-lawyers might attempt, so here's the obligatory recap to head off the trolls and astroturfers:

      1. It is not illegal to obtain a monopoly in a particular market. However, it is illegal to use that monopoly to crush competition and move into other markets.
      2. Judge Thomas Penfield Jackson found Microsoft guilty of abusing its monopoly power and ordered to company split into two entities -- one would be centered around the Windows product and the other would be centered around Office.
      3. An appeals court threw out the breakup ruling on the grounds that Jackson was biased (he granted interviews to reporters prior to releasing his decision, a practice that is frowned upon in legal circles but one that Jackson has championed in the past as important to keeping the public informed about the decisions made in the courts). However, it affirmed the judgment that Microsoft abused its monopoly.
      4. The case was sent to Judge Colleen Kollar-Kotelly in search of a new, unbiased remedy. Kollar-Kotelly initially urged the two sides (Microsoft on one side, the U.S. Department of Justice and 18 state attorneys general on the other) to reach a settlement on their own, with a highly-regarded judge arbitrating. IIRC, these talks went nowhere and the case returned to Kollar-Kotelly.
      5. A regime change took place (George W. Bush was appointed President of the United States, with a non-trivial amount of financial assistance from Microsoft and its employees), and the DOJ, which ultimately reports to the president, conveniently reached a settlement that:
        1. benefits Microsoft
        2. costs Microsoft nothing
        3. aids some consumers in the short term
        4. hurts all consumers in the long term
        Nine state attorneys general (who feel they have more important things to worry about during their terms in office) have signed on to the settlement. The remaining nine refused to accept the settlement and the case has essentially forked.
      6. Microsoft tried to force public acceptance of the settlement by announcing that it has already met the conditions. However, Kollar-Kotelly has yet to approve the settlement.
      7. On Nov. 1, 2002, after 4:00 p.m. EST, Kollar-Kotelly is expected to announce her opinions in both cases.
      My View (as a journalist and engineer who has been closely watching this case for over four years)
      Microsoft often complains that it's being "punished for being successful" to draw attention from the focus of the case, so let's get this out of the way: I don't care about punishment. I want to see a remedy that protects the market and consumers.

      When a person is convicted of driving under the influence, the authorities don't just hand his keys back and say "we'll be watching you." They take away his license for the benefit of society.

      Since MS has demonstrated that it can not handle a monopoly responsibly, an effective remedy must remove the company's ability to violate anti-trust laws in the future. It doesn't get any second chances (as an an irresponsible driver might) because its illegal actions were well-planned and driven by malice (with intent to destroy its competitors, illustrated by such colorful metaphors as "cut off Netscape's air supply").

      If Kollar-Kotelly announces such a remedy, Microsoft will complain that the government is inappropriately interfering with a market it doesn't understand, and it will try to discredit Kollar-Kotelly by accusing her of bias or incompetence.

      No matter what her opinions turn out to be, this will not be the end of the case. Whichever of the three sides is displeased will appeal to SCOTUS and it will be at least another year or two before we see a definitive decision.

      However, tomorrow's news will help shape the central arguments of the SCOTUS fight.

  2. Re:Republican bias by Anonymous Coward · · Score: 5, Insightful
    Considering that Judge Colleen Kollar-Kotelly was appointed by the very conservative Ronald Reagan, and the Justice Department is under control of the reactionary John Ashcroft, you can expect her to rule in Microsoft's favor and reject the deal to let the lawyers for the DoJ and Microsoft water it down even further.

    Judge Jackson was also a Reagan appointee. And yet he took the time to "get it" (by which I mean that he managed to educate himself enough about the technology to see through the smoke screens Microsoft's lawyers put up), and his ruling ripped the company a new one.

    So Judge Kollar-Kotelly may yet rule in favor of Microsoft, but her being a Reagan appointee doesn't guarantee that at all.

  3. who? by Xtifr · · Score: 5, Funny

    Try keeping tabs on the biggest information company in the world...

    What does IBM have to do with the Microsoft antitrust trial? :)

  4. The next "Switch" ad. by Hawthorne01 · · Score: 5, Funny

    I was writing the judgement on the PC, and it was like "beep beep boop beep beep", and then, it was like, half of my judgement was gone, and I was like "Huh?".

    It devoured my judgement.

    It was really a good judgement.

    And then I had to do it again and I had to do it fast so it wasn't as good. It's kind of a...bummer.

    I'm Colleen Kollar-Kotelly, and I'm a judge.

    --
    "Only two things are infinite, the universe and human stupidity, and I'm not sure about the former."
  5. Re:Antr-Trust Suit... anti-trust suit.. antitrusts by Dr+Caleb · · Score: 5, Funny
    No, it's a Teflon(tm) suit that nothing sticks to.

    --
    "History doesn't repeat itself, but it does rhyme." Mark Twain
  6. Re:Considering how biased the first judge was by NanoGator · · Score: 5, Insightful

    "The problem is that they are forcing machine makers to ship Windows as-is and punishes them for shipping otherwise."

    I can't help but think that the bigger PC retailers weren't exactly kicking and screaming over an exlusive arrangement like that until MS's anti-trust allegations came around. If you think about it, 1 OS was good for places like Gateway or Dell or even IBM. Only one OS to support. Computers only needed one OS installed. That one OS ran everything people wanted on their computers, including games.

    If you think about it, MS didn't always have the power to dictate who can use what. I think the odds are pretty good that the retailers themselves were happy to get into those agreements, early on at least.

    --
    "Derp de derp."
  7. Supreme court next by ToasterTester · · Score: 5, Insightful

    No matter what happens Microsoft will appeal to the Supreme Court. That will drag everything on even longer, and be exactly how Microsoft has handled all their dealings. Drag it out until it doesn't matter that much whatever happens.

    Actually Microsoft is punishing themselves more than the court probably will with their new licensing.

  8. Re: Republican bias by Black+Parrot · · Score: 5, Insightful


    > Considering that Judge Colleen Kollar-Kotelly was appointed by the very conservative Ronald Reagan

    Judges sometimes show remarkable independence after being "packed" onto the bench.

    > and the Justice Department is under control of the reactionary John Ashcroft

    Judges don't generally suck up to whoever is running the JD.

    Looking at her record would probably give a better prediction of her behavior.

    --
    Sheesh, evil *and* a jerk. -- Jade
  9. Re:What about the 9 dissenters? by manyoso · · Score: 5, Informative

    She is reponsible for two different rulings. The email today that she would deliver her 'Opinions' (see: plural). The first ruling is whether the settlement is in the public interest. This she can only accept or reject. The other opinion is far more detailed. She could very well break up the company with this other ruling. Hope that helps.

  10. Re:This is new... by mikeee · · Score: 5, Funny

    Well, you know, anything to do with Microsoft won't work properly until version 3. By that logic, Kotar-Kelly's ruling might actually be right!

  11. You know what we need? by serps · · Score: 5, Funny

    A /. poll so we can guess the outcome.

    What do you think the judgement will be?

    • Not guilty. Doh!
    • Monetary fine
    • Disclosure of APIs
    • Breakup
    • Forced to hire CowboyNeal

    Heck, that's worth wagering on. Anyone for SlashBet?

    --
    "Einstein argued that [...] God is not capricious or arbitrary. No such faith comforts the software engineer." ~ Brooks
  12. Why the ruling took so long by FearUncertaintyDoubt · · Score: 5, Funny

    Every time she tried to type her ruling against Microsoft, Clippy kept popping up with "It looks like you are trying to type an unfavorable ruling. Do you want some help?" When she clicked no, wouldn't you know it, one of those darn crashes would happen!

  13. Just To Get You Started... by E-Rock-23 · · Score: 5, Informative

    Anyone interested in MS's Political Contributions? Or how they've fluctuated over the years? Check out This Page to get started.

    Up ontil the antitrust investigation began, MS didn't give diddly squat to political campaigns. Even before then, they gave their cash to whoever had control. It's not that hard to figure out from the graph that whichever party had the top position (ie The President) got the most moolah from Bill and Company. After Dubya was "elected", the donations got wildly lopsided in favor of the Republicans, since it was the Democratic Government, under Speedy Willie Clinton, that started the antitrust hearings, It's not hard to guess why they started getting the short end of the MS tit to suck on.

    Just thought that might interest you all, seeing as how this particular "ruling" is about to be handed down. And just in case you want to see what kinds of contributions are being made by tech companies these days, check out Open Secrets.org. Handy little refference page for the coming Nov. 5 (my birthday, of all days) Elections...

    --
    Blog Prophyts - Right On, Man
  14. Re:Republican bias by sakusha · · Score: 5, Informative

    Umm.. Not really. Judge KK recently gained a bit of attention for her activities as head of the FISA (Foreign Intelligence Surveillance Act) court. That's the secret court that supervises the DoJ and Atty Gen. Asscroft's shredding of civil rights. She nailed Asscroft to the wall for his lies and abuses. This is a woman that has already shown her willingness to stand up to the Atty General. Here's a typical story:
    http://www.washingtonpost.com/ac2/wp-dyn?p agename= article&node=&contentId=A51220-2002Aug22&notFound= true

  15. What bias? by CaptainCarrot · · Score: 5, Interesting
    Whatever led you to think Judge Jackson was biased? His "injudicial" remarks to the press happened near the end of the trial. By then he'd been lied to, railroaded, condescended to, and evaded often enough to strain the patience of a saint. No wonder he needed to blow off some steam.

    Which makes me wonder. If Microsoft had really been trying to win the case on the merits, then their legal team was so incompetent they should all have been fired. I haven't heard they had, though, which makes me wonder if this all went more or less according to plan. Maybe they wanted to infuriate Judge Jackson so much that he would make just the kind of mistake he wound up making. Doesn't it seem to anyone else that from that point on, the MS lawyers suddenly started performing like the legal Dream Team they were supposed to be instead of the fuckups they'd been up to that point? If that's true, they must have been deeply disappointed that only Jackson's penalty was vacated and his finding of fact was left to stand.

    This may surprise those of you who believe that conservative judges always rule politically, like liberal activist judges, but many conservative judges prefer to rule based on fairly strict constructions of the actual law rather than legislate from the bench. No less a towering conservative figure than Robert Bork, Reagan's Supreme Court nominee, believes that MS should be broken up, and he literally wrote the book on the conservative approach to antitrust law. Based on the stories I've read about the trial so far, I expect Judge Kollar-Kotelly to come down rather harsher on MS than some of you seem to fear.

    --
    And the brethren went away edified.
  16. Why an effective monopoly is bad by Thurn+und+Taxis · · Score: 5, Insightful

    You're not drawing a distinction between sole-source and monopoly. Most definitions of the word monopoly refer to exclusive ownership or control, but one definition says "a commodity controlled by one party" (from m-w.com). From the US government's point of view, having a 95% share in a market constitutes an effective monopoly (okay, I pulled that number out of my ass, but it's probably about right in this case). Sure, there are alternatives, but they aren't practical in most cases (see my example below).

    You say "A company shouldn't be penalized for being successful...." This is entirely true, and this is why anti-trust laws were written very carefully. Companies are not punished for being monopolies. If your company makes product A so well that no one else can compete, great! However, companies are punished for using their monopoly in one market to wedge their way into other market rather than competing based on the merits of their product. This is exactly what Microsoft did with Internet Explorer (which, if you remember, was distinctly worse than Netscape Navigator until Microsoft used their monopoly powers to force IE on everyone).

    I'm sick of hearing from people who think monopolies are bad, or who think this case is about Microsoft being a monopoly. It's not. This case is about Microsoft abusing their monopoly to gain control of other markets. The true importance of this case only comes to light when you consider that just about every company in the US (and maybe in the world) depends on Microsoft software to run their computers, and thereby to run their business.

    To put it in concrete terms: let's say you want to start a business selling widgets. You've come up with and patented a method for making widgets that are twice as good and cost half as much as those of your competitors. Now you just need to set up a computer network to control your manufacturing, sales, and distribution network. Since you're a big fan of open-source software, you've built your distribution system using FreeBSD, Linux, or your OSOS (open-source operating system; not to be confused with ZOSO, a popular name for a certain Zeppelin album) of choice. However, you find that the available talent for your secretarial pool (or, in this day and age, the temps you hire) only know Windows, so you buy them a bunch of computers running Windows FU. Suddenly you get a cease-and-desist letter from Microsoft that says that under the terms of the license agreement (which the temps you hired that day clicked through when you set up the machines), you're only allowed to sell widgets if all of your computers have up-to-date licenses for Windows FU, and then you can only sell them at the prices Microsoft dictates. Suddenly you're in a position where Microsoft is controlling your business practices, but you can't tell them to sod off because your secretaries only know Windows. Admittedly this is an extreme example, but without control, Microsoft could have somewhat more subtle but no less disturbing effects on the global economy. Before being broken up, AT&T could've done the same thing. If we need laws to make sure that the companies supplying phone service obey common decency, then why should we be surprised to need similar laws in the computer industry?

    --
    On stereophonic equipment, the monaural sound obtained through multiple channels will enhance your listening pleasure.
  17. Don't sell the Judge short! by stox · · Score: 5, Insightful

    A careful study of Judge Colleen Kollar-Kotelly demonstrates that she is well versed in the law, and spends the necessary effort to research her opinions. I like this is in a Judge, even though I may not agreewith their opinions. IMHO, Microsoft's behavior, to date, has been a clear demonstration of why anti-trust law was created to begin with. I deeply hope that Colleen Kollar-Kotelly is able to see from a similar perspective. If we're lucky, she'll decide that Judge Jackson was far too restrained, and hand Microsoft ground butt in a handbasket. But, then again, I've always been a hopeless optimistic.

    --
    "To those who are overly cautious, everything is impossible. "
  18. This judgement is not very important by Edmund+Blackadder · · Score: 5, Interesting

    Judge Jackson's decision was important because back then it looked like the government and the judicial system were ready able and willing to enforce the law.

    But this DOJ has shown no interest to enforce the antitrust law. This makes the case a farce - a conflict between two parties that basicly agree on the issues, but only want to pretend to disagree.

    The judge can refuse to approve the agreement but what if she does - if the government doesnt seek sanctions she wont impose them. The best she may do is elicit another agreement, which is guaranteed to be just as inefective.

    On top of everything the judicial system has responded in a very unprofessional manner. The appelate court chose not to try and overturn judge jackson on the facts ( they will need to write a good logical justification, based on the evidence, to do that) but to pummel him with ethics accusations.

    The current judge knows very well that Jackson got punished for rendering a certain decision and she is unlikely to do anything similar if she cares about her career at all.

  19. Re:A bad omen for the NBMers by ajakk · · Score: 5, Insightful

    It is amazing that the one actual insightful comment on this entire issue is stuck down at the bottom without any moderation at all.

    The DOJ sold out on this settlement with Microsoft. I have no doubts that a Gore administration would have done just the same, but Charles James really screwed up on this one. The major indicator of how crappy the settlement was is that none of the career antitrust attorneys at the DOJ signed on the settlement. That is an act that is never done by the DOJ. The Washington Post ran a story that was obviously leaked by the career attorneys talking about how Charles James insisted that he should be the only one negotiating with MS, so he and the MS lawyer were sitting in the room together with the MS lawyer dictating what the settlement should be.

    One major question that no one has thought about is how this decision will affect the races for Attorney General that are going on now. The elections are on Tuesday, and three of the resisting AGs are in very tight races. I suspect that the settlement will be rejected, and the judge will state that she thinks there should be a more stringent settlement. Microsoft will then appeal this ruling to the DC Cicuit, where her decision will be upheld. Then, the appeal to the Supreme Court will be VERY interesting.

  20. Re:History Lesson? by Stonehand · · Score: 5, Informative

    Er, there were certainly others, at least in the DOS days. Hell, there was even a DOS clone back then, called DR-DOS (DR = Digital Research; if memory serves, it was later bought by Novell, then by Caldera). There were other multitasking environments back then, such as Desqview and GEM Windows. There was even an IBM-Microsoft partnership -- recall OS/2? Of course, that was before MSFT basically stabbed IBM in the back...

    But as for developing a /new/ system -- interoperability would be critical.

    (1) Nobody wants to migrate their entire application base, especially if it's impossible because the devs won't port it because the market is too small (Catch-22 here).

    (2) Nobody wants to lose access to their documents or ability to exchange files with others, when the porting fails and nobody successfully, completely re-implements the different formats.

    If you can't interoperate with the dominant software (e.g. Microsoft Office and its document formats, WordPerfect w/n the legal domain) you'll have serious problems spreading.

    --
    Only the dead have seen the end of war.
  21. Anittrust Ruling by hackus · · Score: 5, Interesting

    Expect the following:

    1) No real motion to do anything about Microsoft's monopoly on the desktop. They (MS) already bought most of the legal system to insure the ruling stands, regardless if it is legal or not.

    So don't expect any of that to change, now or in the future. Yes, the legal system in the US is that bad, even after Enron.

    2) Expect however, for Microsoft to set a number of legal precendents (such as the keeping of its monopoly power by this judge and others sure to come) that insure other very large companies to consider the same tactics to consolidate thier power in other markets in the US outside the tech industry. (i.e. clothing, energy, automotive ...)

    I expect as this unfolds, the US economy to become even MORE monolithic, and even MORE depressed as more innovation moves offshore to escape the corporate monoliths of invincibility in this country.

    3) Expect other companies to use the same illegal tactics Microsoft has, and then use court rulings to either make "the law" (i.e. specifically anti trust law, cohesion, cartle laws..etc) irrelevant or insure the the legal costs are so high, defending companies will not intrude on companies with 51% market share anywhere.

    Don't expect good news people. It is sad because I want my country to return to the good times. But that won't happen, when companies like Microsoft can sit on 30 Billion in capital and lock it away for the specific use to buy court rulings, and congreessional leaders. SInce this money isn't returned into the economy startups can't use it, ideas don't get funded, and little Johnny will continue to see the cost of the OS increase to the point it is 70% the cost os a home computer! (Which is comming by the way, as hardware prices continue to decline, Microsoft licenses continue to increase at never before seen rates...)

    Monolithic economies, like the US, do not spur innovation, because large corporate entities who already own most of the market don't have to innovate anymore. They just sit on huge amounts of capital, and do nothing with it except harrass competition, startups, and illegally appropriate technology from other companies and figure out how to price fix thier products in the market place.

    The harm that does to the technology investment sector in the US is incalculable, and the job losses are staggering.

    Think about this while all you slashdot IT people sit at home unemployed.

    Don't buy Microsoft products. Force Microsoft to return that ridiculously large pile of cash back into the tech sector.

    Who knows, if the are forced to use all of it, maybe they will make a decent product with it, or improve the alpha quality of the .Net code I have been tinkering with. :-)

    Hack

    --
    Got Geometrodynamics? Awe, too hard to figure out? Too bad.