A US federal judge ruled Monday that Microsoft must face a trial on Justice Department allegations that it illegally preserved and tried to extend a monopoly, rejecting attempts by the world's leading software company to get the case dismissed.
Federal District Judge Thomas Penfield Jackson set 15 October as the date to begin the landmark antitrust trial, endorsing an agreement between Microsoft (MSFT) and the government to delay the case by three weeks.
The Justice Department and 20 states have assembled numerous allegations and all of them are to be heard.
But Jackson dismissed a separate charge that had been made by the states. He said antitrust law did not support their allegation that Microsoft was prohibited from leveraging monopoly power to compete in another market.
Even so, there is much to consider at the trial. "Because numerous issues of material fact remain in dispute as the record presently stands, the court will deny Microsoft's motion for summary judgment," the judge said.
In his 26-page opinion, Jackson took note of a US Court of Appeals decision earlier this year that had reversed him in a separate Microsoft case. At issue was whether Microsoft had the right to combine its Windows operating system with its Internet browser under terms of a 1995 agreement between the Justice Department and the Redmond software company.
The Justice Department had argued the company was forcing the browser on computer makers in violation of the agreement. Microsoft argued it had combined its Web browser and its operating system into a single, integrated product.
The issue will be considered again in the trial next month. The appellate court cautioned that lower courts should be "wary of second-guessing the claimed benefits of a particular design decision."
But Jackson said he needed more information to decide whether there are special benefits to having Microsoft combine a browsing capability with its Windows operating system.
Jackson's decision was a mixed one for Microsoft and pleased the government. "We are very pleased by the court's decision and are looking forward to the upcoming trial," a Justice Department official said.
Microsoft spokesman Mark Murray said that although the company was "disappointed that the court did dismiss the entire case, we're pleased that the court narrowed the lawsuit by dismissing one of the (20 state) governments' claims."
Murray said Microsoft believes the facts were on its side. The next hearing on the case is set for Thursday.
