Joel Kein, assistant attorney general at the US Department of
Justice said: “The court’s order is the right remedy for
Microsoft’s serious and repeated violations of the antitrust
laws.”
Bill Gates said the ruling shows “the government can take away
what you have created if it proves to be too popular.”
Gates continued, “Microsoft has a very strong appeal, because
this decision flies in the face of higher court decisions... It’s
also very unreasonable in terms of breaking the company up and
preventing us from doing creative work. Finally it flies in the
face of what consumers experience every day in terms of better
products at lower prices.”
The judge said he “reluctantly” concluded a break-up is required
because Microsoft refuses to concede that it improperly used its
monopoly in operating systems to restrict competition for internet
browsers. He described Microsoft’s proposed alternative of limited
restrictions on its business practices as “plainly inadequate.”
Judge Jackson said in his court order: “There is credible
evidence that Microsoft, convinced of its innocence, continues to
do business as it has in the past and may yet do to other markets
what it has already done in the PC operating system and browser
markets.”
Judge Jackson also said Microsoft has “proved untrustworthy in
the past” and stated, “Microsoft, as it is presently organised and
led, is unwilling to accept the notion that it broke the law.”
Restrictions were imposed on Microsoft. It must file numerous
reports with the court, create an antitrust compliance committee,
permit computer equipment makers to modify part of Windows and
provide source coding to other software developers.
Jackson also imposed interim relief to take effect during the
appeals process. This includes a requirement that Microsoft keep
the operating system and application businesses separate. Gates
said Microsoft will seek to stay the interim relief during
appeal.
Gates added that Microsoft has strong “legal, factual and
procedural” grounds for overturning the divestiture order. “We are
quite confident this won’t be something that comes into
effect.”
