Judge Warns Microsoft To Keep Promise To Comply With Antitrust Penalties

Microsoft

John Shenefield, an expert testifying for the nine states still suing Microsoft, said the states have little expectation that Microsoft will change its ways.

"If you have monopoly power and you're making a lot of money doing what you're doing, there's very little incentive to change the way you live," Shenefield said. "Hope springs eternal, but you're dealing with a monopolist."

Microsoft's expert, Charles F. "Rick" Rule, said he was "somewhat offended" by Shenefield's statement.

"They very much want to be in compliance," Rule said of Microsoft. "I believe that Microsoft is very sincere of that."

Kollar-Kotelly said she accepts Microsoft's assurance, but that she will be watching.

"These are the kinds of things that will come back to haunt you if you don't, because I have a memory of all these statements," she said.

Kollar-Kotelly's decision on the entire case is expected in late summer.

Much of the testimony Friday, the last day of hearings before closing arguments scheduled for June 19, centered around how much of Kollar-Kotelly's time will be taken up by the ongoing battle between Microsoft and the states.

As the trial judge in charge of the case, Kollar-Kotelly will be responsible for disputes over the life of her decree. The states want a 10-year term, whereas Microsoft and the federal government agreed on five years in their settlement last year.

The states have asked the court for a "special master" to serve as an investigator and arbiter of disputes arising from Kollar-Kotelly's order. Either side could then appeal the special master's final report to the court.

Microsoft and the government agreed on a three-person technical committee whose main job is to help a complaining party--typically a Microsoft competitor--and Microsoft work out an agreement without going back to the judge.

Unlike the special master, the committee does not have set deadlines and any court action would have to be brought by the Justice Department. Critics, including the states still suing, say this would take too long for fledging companies that need immediate help.

"Delay is fatal when you're talking about nascent competition," Shenefield said. "Velocity is not one of (Justice's) signature features."

Rule, who served as a negotiator for Microsoft in settlement talks with the Justice Department, told Kollar-Kotelly the states' plan "provides no firebreak to your honor," and would allow Microsoft competitors to bring many complaints straight to court.

Kollar-Kotelly appeared to be very skeptical of the states' plan, particularly the right for competitors to bring complaints to the special master without filtering them through the states.

"It seems to be sort of abdicating their role," she said of the states.

States that rejected the government's settlement with Microsoft last fall are Iowa, Utah, Massachusetts, Connecticut, California, Kansas, Florida, Minnesota and West Virginia, along with the District of Columbia.

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