By Maxine Shapiro, KERA 90.1 business commentator
Dallas, TX – A very positive ruling for Microsoft and the antitrust lawsuits against them - it's not the end, but the light at this decade-long-tunnel is brighter than ever. I'm Maxine Shapiro with KERA Marketplace Middays.
A year ago, Microsoft and the Justice Department settled on an agreement that had been looming over the company's head for over ten years. Some states felt the settlement was too lenient, and a Federal Judge late Friday basically said, no it wasn't. And by all standards, this is viewed as victory for Microsoft.
According to the Wall Street Journal, here's how it all got started. In 1991, an investigation began by the Federal Trade Commission. There were charges that Microsoft monopolized the market for PC operating systems. In 1993, the case was closed after a deadlock. The Justice Department picked up the ball in '94, and a year later, Microsoft vowed in the settlement to change "its contract with PC makers and eliminate restrictions on other software makers."
In 1997, the Justice Department accused Microsoft of breaking its promise by monopolizing the market and bumping off its competitors - particularly Netscape.
The trial finally began in October '98. Judge Jackson, presiding over this case, didn't like Microsoft very much and ruled for the government; the company was indeed a monopoly. In June 2000, Judge Jackson ordered Microsoft to be split in two, adding that the company out-and-out lied in its testimony.
Viewing Judge Jackson's ruling as a little harsh, the U.S. Court of Appeals for the District of Columbia removed the judge from the case in February 2001, and a couple of months later, overturned the breakup order, and handed the case over to a new judge.
So, last year Microsoft settled with the Justice Department. But nine states didn't accept the settlement. Thus back to federal court and Friday's ruling that the settlement was fair. Could this be back to business as usual for Microsoft? Until the next appeal...
For KERA Marketplace Middays, I'm Maxine Shapiro.
Marketplace Midday Reports air on KERA 90.1 Monday - Friday at 1:04 p.m. To contact Maxine Shapiro, please send emails to mshapiro@kera.org.