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  • From: "H. Wade Minter" <minter AT lunenburg.org>
  • To: InterNetWorkers <internetworkers AT franklin.oit.unc.edu>
  • Subject: Re: [Fwd: FC: It's official: DOJ and Microsoft agree to settle antitrust case]
  • Date: Fri, 2 Nov 2001 11:35:39 -0500 (EST)


If they actually enforce the part about MS opening up its protocols and
APIs, it might be a good thing. If other software can interoperate with
MS stuff at a lower price, it might actually have some decent effects.

Anyone think MS will play nice on that though? Anyone? Noone?

--Wade

On Fri, 2 Nov 2001, B wrote:

> What do y'all think of this?
>
> (To be honest, I rather wanted the monster cleaved in twain -- OS and
> s/w -- and am somewhat disappointed that the feds actually let them off
> with less than a slap on the wrist. Wasn't "we're going to watch you"
> the failed remedy for MS' previous egregious conduct?)
>
> -------- Original Message --------
> Subject: FC: It's official: DOJ and Microsoft agree to settle antitrust case
> Date: Fri, 02 Nov 2001 10:01:45 -0500
> From: Declan McCullagh <declan AT well.com>
> Reply-To: declan AT well.com
> To: politech AT politechbot.com
>
> [Well, so much for that. Anyone want to speculate on how different this
> deal is from what Microsoft has been offering in settlement talks since
> early 1998? If the differences are minimal and if the judge accepts this
> deal, then just what did this lawsuit accomplish, beyond enriching lawyers,
> eating up tens of millions of tax dollars, and launching a flotilla of
> anklebiting private antitrust suits? --Declan]
>
> ---
>
> Proposed final judgment:
> http://www.microsoft.com/presspass/trial/nov01/11-02settlement.asp
>
> ---
>
> http://www.microsoft.com/presspass/legalnews.asp
> What:
> Microsoft Corp. news conference to discuss antitrust settlement
> Who:
> Senior Microsoft executives
> When:
> Friday, Nov. 2, 2001
> Media check-in: 8 a.m. PST/11 a.m. EST
> News conference begins: 9 a.m. PST/ noon EST
> Media must provide credentials and are subject to search.
> Doors to Microsoft Studios open at 8 a.m. PST.
> Where:
> Microsoft Studios
> 4420 148th Ave. NE
> Redmond, Wash.
> Call-In Information (Listen-Only News Conference)
> Domestic (U.S.) (888) 593-3970 Pass code: Microsoft
> International
> (712) 271-3406 Pass code: Microsoft
>
> ---
>
> DEPARTMENT OF JUSTICE
> FOR IMMEDIATE RELEASE
> FRIDAY, NOVEMBER 2, 2001
> WWW.USDOJ.GOV
> AT
> (202) 514-2007
> TDD (202) 514-1888
>
> DEPARTMENT OF JUSTICE AND MICROSOFT CORPORATION
> REACH EFFECTIVE SETTLEMENT ON ANTITRUST LAWSUIT
>
> Settlement Provides Enforcement Measures to Stop Microsoft's Unlawful
> Conduct,
> Prevent Its Recurrence, and Restore Competition
>
> WASHINGTON, D.C. - The Department of Justice reached a settlement
> today with Microsoft Corporation that imposes a broad range of restrictions
> that will stop Microsoft's unlawful conduct, prevent recurrence of similar
> conduct in the future and restore competition in the software market,
> achieving prompt, effective and certain relief for consumers and businesses.
>
> The settlement reached today accomplishes this by:
>
> * abcreating the opportunity for independent software vendors to
> develop products that will be competitive with Microsoft's middleware
> products on a function-by-function basis;
>
> * giving computer manufacturers the flexibility to contract with
> competing software developers and place their middleware products on
> Microsoft's operating system;
>
> * preventing retaliation against computer manufacturers, software
> developers, and other industry participants who choose to develop or use
> competing middleware products; and
>
> * ensuring full compliance with the proposed Final Judgment and
> providing for swift resolution of technical disputes.
>
> "A vigorously competitive software industry is vital to our
> economy and effective antitrust enforcement is crucial to preserving
> competition in this constantly evolving high-tech arena," said Attorney
> General John Ashcroft. "This historic settlement will bring effective
> relief to the market and ensure that consumers will have more choices in
> meeting their computer needs."
>
> The settlement, which will be filed today in U.S. District Court
> in the District of Columbia with Judge Colleen Kollar-Kotelly, if approved
> by the court, would resolve the lawsuit filed by the Department on May 18,
> 1998.
>
> "This settlement will promote innovation, give consumers more
> choices, and provide the computer industry as a whole with more certainty
> in the marketplace," said Charles A. James, Assistant Attorney General for
> the Antitrust Division. "The goals of the government were to obtain relief
> that stops Microsoft from engaging in unlawful conduct, prevent any
> recurrence of that conduct in the future, and restore competition in the
> software market-we have achieved those goals."
>
> Today's proposed settlement is modeled on the conduct provisions
> in the original Final Judgment entered by Judge Jackson, but includes key
> additions and modifications that take into account the current and
> anticipated changes in the computer industry, including the launch of
> Microsoft's new Windows XP operating system, and the Court of Appeals
> decision revising some of the original liability findings.
>
> The proposed Final Judgment includes the following key provisions:
>
> Broad Scope of Middleware Products- The proposed Final Judgment
> applies a broad definition of middleware products which is wide ranging and
> will cover all the technologies that have the potential to be middleware
> threats to Microsoft's operating system monopoly. It includes browser,
> e-mail clients, media players, instant messaging software, and future new
> middleware developments.
>
> Disclosure of Middleware Interfaces- Microsoft will be
> required to
> provide software developers with the interfaces used by Microsoft's
> middleware to interoperate with the operating system. This will allow
> developers to create competing products that will emulate Microsoft's
> integrated functions.
>
> Disclosure of Server Protocols- The Final Judgment also ensures
> that other non-Microsoft server software can interoperate with Windows on a
> PC the same way that Microsoft servers do. This is important because it
> ensures that Microsoft cannot use its PC operating system monopoly to
> restrict competition among servers. Server support applications, like
> middleware, could threaten Microsoft's monopoly.
>
> Freedom to Install Middleware Software--Computer manufacturers
> and
> consumers will be free to substitute competing middleware software on
> Microsoft's operating system.
>
> Ban on Retaliation--Microsoft will be prohibited from retaliating
> against computer manufacturers or software developers for supporting or
> developing certain competing software. This provision will ensure that
> computer manufacturers and software developers are able to take full
> advantage of the options granted to them under the proposed Final Judgment
> without fear of reprisal.
>
> Uniform Licensing Terms- Microsoft will be required to license
> its
> operating system to key computer manufacturers on uniform terms for five
> years. This will further strengthen the ban on retaliation.
>
> Ban on Exclusive Agreements- Microsoft will be prohibited from
> entering into agreements requiring the exclusive support or development of
> certain Microsoft software. This will allow software developers and
> computer manufacturers to contract with Microsoft and still support and
> develop rival middleware products.
>
>
> The proposed Final Judgment also includes key additional
> provisions related to enforcement:
>
> Licensing of Intellectual Property- Microsoft also will be
> required to license any intellectual property to computer manufacturers and
> software developers necessary for them to exercise their rights under the
> proposed Final Judgment, including for example, using the middleware
> protocols disclosed by Microsoft to interoperate with the operating
> system. This enforcement measure will ensure that intellectual property
> rights do not interfere with the rights and obligations under the proposed
> Final Judgment.
>
> On-Site Enforcement Monitors- The proposed settlement also
> adds an
> important enforcement provision that provides for a panel of three
> independent, on-site, full-time computer experts to assist in enforcing the
> proposed Final Judgment. These experts will have full access to all of
> Microsoft's books, records, systems, and personnel, including source code,
> and will help resolve disputes about Microsoft's compliance with the
> disclosure provisions in the Final Judgment.
>
> The core allegation in the lawsuit, upheld by the Court of
> Appeals
> in June 2001, was that Microsoft had unlawfully maintained its monopoly in
> computer-based operating systems by excluding competing software products
> known as middleware that posed a nascent threat to the Windows operating
> system.
>
> Specifically, the Court of Appeals found that Microsoft
> engaged in
> unlawful exclusionary conduct by using contractual provisions to prohibit
> computer manufacturers from supporting competing middleware products on
> Microsoft's operating system; prohibiting consumers and computer
> manufacturers from removing Microsoft's middleware products from the
> operating system; and reaching agreements with software developers and
> third parties to exclude or disadvantage competing middleware products.
>
> The proposed Final Judgment will be published by the Federal
> Register, along with the Department's Competitive Impact Statement, as
> required by the Antitrust Procedures and Penalties Act. Any person may
> submit written comments concerning the proposed consent decree within 60
> days of its publication to: Renata Hesse, Trial Attorney, 325 7th Street,
> N.W., Suite 500, Washington, D.C. 20530, (202-616-0944). At the conclusion
> of the 60-day comment period, the Court may enter the proposed consent
> decree upon a finding that it serves the public interest.
>
> The proposed Final Judgment will be in effect for a five year
> period and may be extended for an additional two-year period if the Court
> finds that Microsoft has engaged in multiple violations of the proposed
> Final Judgment.
>
> ###
>
> 01-569
>
>
>
>
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