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Microsoft Corp.

Supreme Court to Decide Fate of Microsoft in Antitrust Case

Strategic Insights

— 1 min read

The Supreme Court is set to begin its new term in October with a range of high-profile cases, but none as significant as the Microsoft antitrust case. At stake is the fate of the software giant, which has been accused of using its dominant position in the market to stifle competition. The case began with a landmark federal antitrust trial, in which U.S. Judge Thomas Penfield Jackson ruled that Microsoft must be snapped in two, with one company containing the Windows operating system and the other all other Microsoft applications.

Key Takeaways:

  • The Supreme Court is faced with the question of whether to take the Microsoft appeal directly under the terms of the federal Expediting Act, or bounce it back for argument in an intermediate appeals court.
  • The case centers on whether Microsoft's integration of its Web browser, Internet Explorer, into Windows was an attempt to force users to also use another company product, to the detriment of rivals such as Netscape.
  • The Justice Department wants to take the case directly to the Supreme Court, while Microsoft is asking the justices to let an intermediate appeals court hear the case first.
  • The court has received an application to expedite the appeal, citing the Expediting Act, which allows either side in a major antitrust case to ask the trial judge to certify the appeal directly to the Supreme Court when it is in the public's interest.
  • The justices could announce a decision when they start to issue orders next week prior to beginning the new term on Oct. 2, and it would take at least four votes to agree to hear the appeal directly.
  • The case is part of a range of high-profile cases the Supreme Court will hear this term, including one dealing with the power of the Environmental Protection Agency and another on whether state hospitals can test expectant mothers for crack cocaine.

Statistics:

  • The Supreme Court receives around 150 appeals a term, but has reduced its caseload to around 75 in recent years.
  • Microsoft has 19 states on its side, alleging that the company's actions have stifled competition in the software market.
  • The Justice Department wants to finish the case as quickly as possible so Judge Jackson's ruling can go into effect.

Sources:

  • UPI (Washington, Sept. 22)
  • Justice Department
  • Microsoft Corporation

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