Microsoft Antitrust Case: Settlement Talks Remain Open Despite Judge's Ruling

The US Justice Department has not ruled out the possibility of settling the Microsoft antitrust case, a day after US District Court Judge Thomas Penfield Jackson ordered the company to be split into two entities. Microsoft Chairman Bill Gates and CEO Steve Ballmer have announced their intention to appeal the decision, and the case may go directly to the Supreme Court. Despite the lack of progress in settlement talks, Justice officials maintain that they are still open to negotiations.

Key Takeaways:

• The Justice Department remains open to possible settlement negotiations with Microsoft, despite Judge Jackson's ruling.
• Microsoft Chairman Bill Gates and CEO Steve Ballmer have announced their intention to appeal the decision, citing a lack of opportunity to settle.
• The case may go directly to the Supreme Court, an idea supported by Judge Jackson.
• Assistant Attorney General Joel Klein emphasized that settlement is always the preferred course in this kind of litigation, but settlement talks are not restarting.
• Microsoft stock has performed relatively well since Jackson's decision, while Washington's lawmakers have responded with incredulity and support for the company.
• Judge Klein defended the vertical divestiture of the company, stating that it would create two powerful companies with flagship products and high-quality staff.
• Competitors to the two hypothetical Microsofts should "watch out" for increased competition, according to Klein.

Statistics:

• The Justice Department and Microsoft met under a specially appointed mediator, Judge Richard Posner, for four months to try to reach a settlement.
• Nearly 20 state attorneys general met with Microsoft and the Justice Department during the four-month settlement talks.
• Microsoft stock has performed relatively well since Jackson's decision, but specific stock price data is not provided in the source material.

Sources:

• Newsbytes.com
• Quote from Assistant Attorney General Joel Klein
• Quote from Attorney General Janet Reno
• Judge Thomas Penfield Jackson order
• Washington's lawmakers' statements (Rep. Jay Inslee, Sen. Patty Murray, Sen. Slade Gorton, and Washington Gov. Gary Locke)
• Quote from Judge Richard Posner (Judge Jackson's mediator)