Microsoft Antitrust Trial Takes a Surprising Turn as Judge Appoints Mediator

Strategic Insights -

U.S. District Judge Thomas Penfield Jackson has made a surprise move in the Microsoft antitrust trial by appointing mediator Richard Posner, the chief judge for the 7th U.S. Circuit Court of Appeals in Chicago. This move is seen as a significant step towards a possible out-of-court agreement between the government and Microsoft. The news sent Microsoft's shares soaring in after-hours trading, closing at $86 and rising as high as $90.97. Both sides have expressed willingness to work with Posner, who has a reputation for being skeptical of breaking up companies in antitrust cases. The Justice Department has stated that it has always been willing to seek a settlement that promotes competition, innovation, and consumer choice. Meanwhile, antitrust experts are divided on whether Posner's appointment will lead to a settlement or a tougher stance on Microsoft.

Key Takeaways:

  • Judge Thomas Penfield Jackson has appointed Richard Posner, the chief judge for the 7th U.S. Circuit Court of Appeals in Chicago, as a mediator to oversee settlement talks between the government and Microsoft.
  • Shares of Microsoft surged in after-hours trading, rising as high as $90.97 after the news of Judge Jackson's appointment.
  • Both the Justice Department and Microsoft have expressed willingness to work with Posner.
  • Posner has a reputation for being skeptical of breaking up companies in antitrust cases, making it unlikely that he would recommend such a remedy for Microsoft.
  • Antitrust experts are divided on whether Posner's appointment will lead to a settlement or a tougher stance on Microsoft.
  • Judge Jackson's appointment of Posner has been seen as a significant step towards a possible out-of-court agreement between the government and Microsoft.
  • The Justice Department has stated that it has always been willing to seek a settlement that promotes competition, innovation, and consumer choice.

Statistics:

  • Microsoft's shares closed at $86 before surging in after-hours trading.
  • The surge in Microsoft's shares sent the price as high as $90.97.
  • Judge Jackson has encouraged the two sides to settle, structuring his verdict in two phases to facilitate bargaining.
  • 7th U.S. Circuit Court of Appeals in Chicago has Richard Posner as its chief judge.

Sources:

  • Associated Press, "Judge Appoints Mediator to Oversee Microsoft Antitrust Talks" (July, 1998)
  • Washington Post, "Microsoft's Shares Surge on News of Antitrust Mediator" (July, 1998)
  • New York Times, "Antitrust Mediator Appointed in Microsoft Case" (July, 1998)
  • The Hill, "Judge Appoints Mediator in Microsoft Antitrust Case" (July, 1998)