What's at Stake for Microsoft?

Co-plaintiffs wonder what sanctions to recommend if a judge rules against the software company in the antitrust trial. Dividing the company into several "Baby Bills" is just one option.

WASHINGTON -- The US Justice Department and representatives of 19 states are pondering what remedies they will seek if they prevail in their antitrust case against Microsoft.

Sources close to the case said the possible sanctions range from breaking up the software superpower to ordering Microsoft to stop violating the law. The Washington Post reported Monday that several possible sanctions were under consideration, but no decisions had been made.


For a window onto the Microsoft antitrust trial, visit US v. Microsoft. - - - - - -

A Justice Department official reacted strongly to the report. "The trial is ongoing. Speculation about what the department might do if the court rules in our favor is premature and inappropriate."

Microsoft spokesman Jim Cullinan said it was "clear from comments both in and outside the courtroom that the government is interested in getting involved in the design of software." He said a US Court of Appeals decision last year in Microsoft's favor and against the government showed "that is not in the interest of consumers."

After 15 weeks of trial, Microsoft is more than halfway through its defense against allegations it used its Windows operating-system monopoly to preserve and extend its power in the PC software market. The case has centered on allegations that Microsoft competed unfairly against Netscape Communications in the market for Web browsers.

The cross-examination of Microsoft witnesses has been contentious, and the Post reported, "Most observers of the trial believe the odds are high that the judge will rule against Microsoft later this year."

But Microsoft said that what people have seen in the courtroom amounts to little more than theatrics and its case is stronger than some observers believe.