Microsoft Judge Questions Scope of States' Demands

U.S. District Judge Colleen Kollar-Kotelly says she has "concerns" about the states' argument that the sanctions should be designed to protect PC-related devices and services, such as computer servers, handheld organizers, Web services and TV set-top boxes, from Microsoft's monopoly power.

"I have some concerns about your argument," Kollar-Kotelly told Steven Kuney, an attorney representing the states. "I think there is an argument that this is outside [the scope of the case."

Kollar-Kotelly granted Microsoft a week's delay in hearings originally due to start Monday on the non-settling states' proposals, agreeing the company needed time to study last-minute changes from the states.

The software giant reached a settlement deal with the Department of Justice in November after an appeals court in June upheld a lower court conclusion that Microsoft had used illegal tactics to maintain its Windows monopoly.

While nine of the 18 states in the lawsuit agreed to sign on to the settlement, the remaining nine, including California, Massachusetts and Connecticut, are still pursuing the case, saying the settlement is too weak to prevent future violations.

The merits of the settlement were promoted to Kollar-Kotelly by lawyers for Microsoft and the Justice Department in a separate hearing held Wednesday.

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