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NY Times/Reuters: Judge in Microsoft Case Sees Merit in a 3-Way Split of Company

May 24, 2000, 19:27 (9 Talkback[s])

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"The judge in the Microsoft antitrust trial on Wednesday questioned a government plan to split the software giant in two and praised an outside proposal to break off its Internet browser into a third company. "The effect of a bisection will in effect create two separate monopolies," District Judge Thomas Penfield Jackson said, questioning the government's proposal at the start of hearings on how to address Microsoft's (MSFT.O) monopoly power."

"Later, Jackson praised as an ``excellent brief" a 65-page friend-of-the-court filing submitted by the Computer and Communications Industry Association and Software and Information Industry Association. ``Rather than reorganizing Microsoft into only a Windows company and a single applications company, the court should supplement plaintiffs' proposed final judgement by separating the Internet Explorer product and personnel into a third, independent company," the brief said."

"It was the second setback for Microsoft as the court reconvened for the final stage of the landmark antitrust trial, which will determine the penalty it must face for breaking antitrust law. As the hearing began, Jackson declined to allow discussion of Microsoft's motion to dismiss the government proposal to break the software giant in two, moving straight to discussion of antitrust remedies."

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