Microsoft Gains Advantage in Antitrust Appeal with Full Court to Hear Case

Strategic Insights -

The U.S. Circuit Court of Appeals has agreed to hear Microsoft's appeal of a sweeping breakup order imposed for antitrust violations with a full complement of its judges. This decision could potentially bypass the Supreme Court, however, the government may still expedite the case to the high court. Microsoft's appeal will be heard by seven judges, skipping the normal three-judge hearing and full court rehearing.

Key Takeaways:

  • The U.S. Circuit Court of Appeals will hear Microsoft's appeal with all seven remaining judges, due to the exceptional importance of the case and the disqualification of three judges.
  • The circuit court's decision puts pressure on the government to move quickly and get the case up for consideration by the Supreme Court.
  • With seven judges sitting en banc to hear the appeal, the Supreme Court is less likely to take the case, as the Court of Appeals has stepped up to handle it quickly and expeditiously.
  • The appellate court's decision was made after regular trading ended on the Nasdaq Stock Market, where shares of Microsoft finished at $67.875, up $1.
  • In after-hours trading, shares jumped $2.563 to $70.438.
  • The antitrust violations alleged against Microsoft include abusing its monopoly over personal computer operating systems to harm consumers and thwart innovation.
  • U.S. Dist. Judge Thomas Penfield Jackson had initially considered sending the case directly to the Supreme Court, but Microsoft's appeal to the circuit court may bypass this.

Statistics:

  • 7 judges will hear Microsoft's appeal with the U.S. Circuit Court of Appeals.
  • $1 increase in Microsoft's share price during regular trading on the Nasdaq Stock Market.
  • $2.563 increase in Microsoft's share price during after-hours trading.
  • 67.875 was the price of Microsoft's share during regular trading on the NASDAQ.
  • 70.438 was the price of Microsoft's share in after-hours trading.
  • 3 judges were disqualified from the case.
  • 10 total judges make up the U.S. Circuit Court of Appeals.

Sources:

  • Michael J. Sniffen The Associated Press WASHINGTON --
  • Outside General Counsel Silicon Valley, a California law firm.