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Software industry

Microsoft Must Be Broken Up, US District Court Judge Rules

Strategic Insights

— 1 min read

US District Court Judge Thomas Penfield Jackson today ruled that Microsoft Corp. must be broken up into two companies. Microsoft's chief lawyer, William H. Neukom, vowed to take the case to a higher court, stating that the appeals process could take a year or longer. The case now may move either to an appeals process or directly to the Supreme Court. Microsoft Chairman Bill Gates expressed willingness to abide by the law, stating that the company will seek a stay of the order and that its "heart and soul" remain in the US.

Key Takeaways:

  • The US District Court Judge Thomas Penfield Jackson ruled that Microsoft Corp. must be broken up into two companies.
  • The breakup will involve carving the software giant up into two companies, one built around operating systems and the other dealing with software applications.
  • Microsoft's chief lawyer, William H. Neukom, promised to take the case to a higher court, stating that the appeals process could take a year or longer.
  • The company will be required to submit a divestiture plan within four months, and the Justice Department will have 60 days to respond.
  • Microsoft must operate under a business-as-usual plan until any breakup would theoretically occur.
  • The judge lambasted the company for resisting the idea of a breakup as being bad for consumers and an unwarranted punishment for trying to illegally preserve its Windows OS monopoly.
  • Microsoft will be responsible for not only spinning off all relevant personnel, systems, and other assets but also all intellectual property as well.

Statistics:

  • The appeal process could take a year or longer, according to Microsoft's chief lawyer, William H. Neukom.
  • The company has four months to submit a divestiture plan.
  • The Justice Department has 60 days to respond to Microsoft's plan.
  • Microsoft has 30 days to file a rebuttal to the Justice Department response.
  • The breakup would involve carving the company into two separate entities, one built around operating systems and the other dealing with software applications.

Sources:

  • Newsbytes.com, 17:13 CST (20000607 /WIRES ONLINE, LEGAL, BUSINESS, PC/MSDEC/PHOTO)

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