Microsoft appeal is the best course

Microsoft appeal is the best course

Wednesday, April 5, 2000

SEATTLE POST-INTELLIGENCER EDITORIAL BOARD

Those calling for Microsoft to settle with federal and state governments in the wake of Monday's court defeat take the too-narrow, too-short view. It is in the broader, long-term public interest to reach a precedent on the application of venerable antitrust laws to the vibrant high-tech industry.

The route to that precedent lies not in settlement of the case but in appeal of U.S. District Court Judge Thomas Penfield Jackson's ruling.

The public is less well-served by a deal brokered behind closed doors than by a precedent delivered in an open courtroom.

There is disagreement over which may be the best immediate business course for Microsoft. Pressing its case through the appeals process for several more years could erode the company's image and stock prices. But if the company prevails on appeal, it will mean not merely a vindication for Microsoft but a judicial clarification for the entire industry.

Microsoft did prevail in 1998 when the U.S. Court of Appeals for the District of Columbia Circuit reversed one of Jackson's previous rulings against the company. Monday, Jackson took what observers called the highly unusual position for a lower court judge of both criticizing and dismissing the appellate court decision.

The same court will hear any appeals of his most recent ruling.

There also will be disagreement over the correctness of Jackson's ruling. Least compelling in the state's argument, and Jackson's acceptance of it, is the allegation that consumers were damaged by Microsoft's practices. Speculative damages were postulated, while actual damages went unproved.

The next step is the remedies phase during the summer when Jackson will rule on the price Microsoft must pay for the transgressions of the Sherman Antitrust Act he ruled the company has committed. That could include sanctions, fines, restrictions on practices or breaking the company into smaller units, as was done in the Standard Oil and AT&T cases.

We support Microsoft's decision to appeal Jackson's ruling, and encourage expedited reviews by the appellate courts, including the U.S. Supreme Court. The result may be the most pivotal and profound business ruling of this transition from the Industrial Age to the Information Age.

OPINION HEADLINES
· Bush Administration: Almost midnight
· Alaskan Way Viaduct: Process at work
· Pedestrians: Detour relief
· The Iraq that Obama inherits
· Pirates teach lesson in economics
· Sound recovery good for economy
· Decision-making process forms policies
· 'Save Employees' pool would keep state workers afloat
· Obama's A-team economists can start With ABCs
· Big business transfers its loyalty, money to Democrats
· GM offers us a trade-in with pain included
· The unhealed wound of Kashmir

more

SEATTLE BLOGS

Virtual Editorial Board
· Money for automakers, school funding and Seattle streetcars. Plus reader comments on viaduct
· Viaduct, Bush transition and more plus reader comments on Sound Transit, Justice Sanders
· King County elections; Recession, plus Higher education funding; Reader comments on depression

AP: TOP HEADLINES

· Chrysler exec: failure could spark depression
· Obama: Financial bailout must help homeowners, too
· Leftover explosives found in Mumbai train station
· Obama names Richardson to head Commerce Department
· Judge gives millennium terrorist same 22-year term

more

AP: ODD NEWS

· Camels found wandering in Mexican border city
· The one that didn't get away yields long-lost ring
· Urn left at Helping Hands charity in Arkansas
· Throw Christmas tree: Tannenbaum used as weapon
· Man accused of tossing Christmas tree at his dad

more