Microsoft heads back to court

Software giant Microsoft and the US government returned to court last week for final arguments in the antitrust case.

Software giant Microsoft and the US government returned to court last week for final arguments in the antitrust case.The arguments, based on conclusions of law the parties spelled out in briefs to the court, mark the final phase of a long battle between the software giant, the US Department of Justice and 19 states.The vendor, which has already been deemed to be a monopoly, now heads back to court following a lobbying campaign in which it called on federal legislators to look favourably on its "common-sense" approach to a settlement.The company also asked legislators to reject the notion of breaking up Microsoft, which sources claimed federal and state prosecutors are seeking.Kerry Knott, a Microsoft lobbyist, recently emailed congressional offices. He said: "Microsoft is serious about trying to settle this case, and we believe a common-sense settlement should be possible. The company is dismayed about talk of a breaup."Meanwhile, Bill Gates, chairman of Microsoft, said he and chief executive Steve Ballmer were "putting all our creativity" into coming up with a settlement.Donald Falk, an antitrust expert and partner in law firm Mayer, Brown and Platt, said: "They've always been creative in developing anti-competitive techniques. I think their way of developing a settlement would be something along the lines of, 'What don't we need to do any more?'"Microsoft would like to keep the settlement limited so that it doesn't affect the future, but the government is smarter than that."Although the government and Microsoft have been secretive about the progress of ongoing out-of-court settlement talks, it is unlikely the government will settle for anything short of a significant concession from Microsoft, Falk said."It's difficult to see why the government would give up for an empty victory. There's little likelihood it would settle for relief that would not have a significant effect on the future of the market," Falk added.History of the case

• The Department of Justice (DoJ) and 19 American states began the case against Microsoft on 19 October 1998.
• District Judge Thomas Penfield Jackson presented his findings of fact on 5 November 1999. Jackson concluded Microsoft has a powerful monopoly and uses unfair methods to preserve the position of its Windows operating system and to move it into the Web browser market.
• On 30 November, the DoJ and Microsoft met appeal court Judge Richard Posner to discuss a possible out-of-court settlement.
• The trial resumed on Tuesday and the final verdict is expected in March.