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PC Week: Microsoft: On the ropes!

Apr 11, 2000, 08:26 (8 Talkback[s])
(Other stories by Scott Berinato)

"U.S. District Judge Thomas Penfield Jackson's guilty verdict last week in the antitrust suit the government brought against the Redmond, Wash., company two years ago was expected, even by Microsoft. What wasn't, however, was the possibly more damaging toll the legal proceedings have taken on the company. According to many close to Microsoft, the company has been driven to major distraction by the trial, which has resulted in the delay of at least one of the company's major forthcoming product initiatives, Next Generation Windows Services."

"In addition to the ruling last week, more than 110 class action suits have been leveled against the company since Jackson's findings of fact were issued last November; archrival Sun Microsystems Inc. has intimated the possibility of launching its own antitrust lawsuit against the company; Microsoft's stock value dropped a total of 15 percent since the verdict was announced; and at least a half-dozen key executives have been forced into double duty, splitting their time between their regular jobs and assisting with the case."

""The class actions will be a major headache," said Hillard Sterling, an antitrust attorney at Gordon and Glickson LLC, in Chicago. "There's just no efficient process to consolidate all of these. It will be a multifront battle for years to come regardless of the outcome of this trial. There's no hope of getting rid of these expeditiously.""

Complete Story

[ Second page, PC Week Labs examines how remedies might products' future, details specific Microsoft product tyings that could be disallowed in the 'remedies' phase. ]

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