Microsoft Monopoly Confirmed

An appeals court refused on Thursday to reconsider its decision that Microsoft illegally mingled its Windows operating system and Internet browser, handing the software giant a setback in its four-year antitrust battle with the government.

The U.S. Court of Appeals for the District of Columbia denied Microsoft's request in a brief order, clearing the way for the case to be sent back to a lower court to decide Microsoft's penalty for being an illegal monopoly.

"Nothing in the court's opinion is intended to preclude the District Court's consideration of remedy issues," the appellate judges said.

But the appeals panel also ruled that Microsoft illegally commingled software code for the two flagship products in an attempt to stunt competition and keep consumers from using one without the other.

The software giant is still considering a Supreme Court challenge in the four-year antitrust case.

Jim Desler, a Microsoft spokesman, said the company is also looking to the future. "We remain committed to moving forward promptly in the legal process and continue to remain open to resolving any remaining issues in this case as quickly as possible."

"We continue to review our options with regard to Supreme Court review," Desler added.

Legal experts, however, suggested that would be futile.

"You had a unanimous decision by a very conservative court of appeals that found them guilty eight times of monopolization," said University of Baltimore law professor Bob Lande. "The Supreme Court isn't going to reverse that."

In brief statements, representatives for both the Justice Department and the state attorneys general suing Microsoft said they were pleased with the appeals court's refusal to reconsider commingling, and looked forward to the next phase of the case.

The commingling issue was a central tenet of the Jstice Department's antitrust case.

"A detailed analysis of the factual record discloses that the district court's finding that Microsoft engaged in unjustified 'commingling' of software code is clearly erroneous," Microsoft wrote the court.

The appeals court ruled that Microsoft had operated as an illegal monopoly and harmed consumers. This decision clears the way for a lower court judge to be picked — unless Microsoft decides to appeal to the Supreme Court. Some analysts predict the government will seek a settlement in the case, as it has in the ongoing tobacco litigation.

Microsoft's practice of incorporating multiple features in Windows has been a centerpiece in the antitrust case.

In October, Microsoft's new Windows XP operating system is scheduled to reach store shelves. Windows XP includes many more added features, and has brought criticism from state attorneys general, Microsoft competitors and members of Congress.

Competitors argue Microsoft uses the operating system to dominate the market for other technology; Microsoft contends it simply is adding features users want.

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