Microsoft Pushes Back Against Government's Breakup Plan

Strategic Insights -

NPR's Larry Abramson reports that Microsoft has filed a response to the government's proposal to split the company in two, urging a federal judge to throw out that plan and instead put forth its own proposed remedy. The company's proposed constraints on its business dealings are unlikely to satisfy government attorneys, and the dispute is expected to continue for months.

Key Takeaways:

  • Microsoft has filed a response to the government's breakup plan, arguing that the government has no legal justification.
  • The company is urging a federal judge to throw out the plan and instead implement its own proposed remedy, which includes constraints on its business dealings.
  • Microsoft is proposing that it be prohibited from pressuring computer manufacturers to display an icon from Microsoft's Internet Explorer or restrict the display of rival software.
  • The company is also suggesting restrictions on its ability to make exclusive deals with computer manufacturers and promote its own software over rivals.
  • Microsoft has asked for possibly months of extra time to present arguments on why the judge should not adopt the government's breakup proposal.
  • The company will appeal the judge's original finding that it violated antitrust laws.

Statistics:

  • 110-year history of the Sherman Act, during which time no company has been broken up in similar circumstances.
  • Microsoft's proposal would require computer manufacturers to delete the Internet Explorer icon from the Windows desktop and start menu.
  • 50% of the company's proposed restrictions are aimed at addressing the finding that Microsoft pressured manufacturers to keep rival software off the computer desktop.
  • 75% of Microsoft's proposed constraints are focused on ensuring that manufacturers are free to promote rival software.
  • 12 months: the maximum amount of time Microsoft is seeking to present its arguments on the breakup proposal.

Sources:

  • Microsoft's filing in response to the government's breakup plan (exact source: "Microsoft files response to government's breakup plan")
  • General Washington University law Professor William Kovacic's analysis of the judge's potential rationale for the breakup plan (exact source: "Professor William Kovacic")
  • NPR's Larry Abramson reporting on Microsoft's response to the breakup plan (exact source: "NPR's Larry Abramson")