Microsoft 2 Essay Research Paper Government

Microsoft 2 Essay, Research Paper

Government’s Proposed Conduct Remedies Would Also Hurt Consumers and Innovation; Company Outlines Proposal to Speed Resolution of the Case As Well As More Extensive Remedy Procedures If Necessary

REDMOND, Wash. – May 10, 2000 – Microsoft Corp. today urged U.S. District Court Judge Thomas Penfield Jackson to dismiss the government’s unprecedented proposal to break up the company and outlined more appropriate remedies as well as a range of procedures designed to move the remedy phase forward as quickly as possible.

Statements by Steve Ballmer On Demand

5/10/00

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5/11/00

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“We are working to try to resolve this case as quickly as possible, in a fair and reasonable manner. We believe there is no basis in this case for the government’s unprecedented breakup proposal, and we are hopeful that the Court will dismiss this excessive demand immediately so that the case can move forward much more rapidly,” said Microsoft Chairman Bill Gates.

“Even without the extreme breakup proposal, many elements of the government’s proposed regulations are unwarranted, outside the scope of this case, and very damaging to consumers,” Gates said. “The government’s proposals would take away Microsoft’s property by forcing us to disclose the source code for our products, even though Microsoft spent hundreds of millions of dollars to develop these products. The government also seeks to interfere with the design of Microsoft’s products.”

The company is providing its initial legal and practical objections to the government’s wide-ranging remedy proposals, which were filed 12 days earlier on April 28 by the Department of Justice and the State Attorneys General involved in the case.

“The government’s so-called conduct and disclosure remedies are just as damaging to the company, and just as bad for consumers as their breakup demand. The government’s proposals really represent government regulation of software design and an unwarranted taking of Microsoft’s intellectual property,” said Microsoft President and Chief Executive Officer Steve Ballmer.

The company’s summary critique of the government’s proposals points out that the government’s proposed relief relates to products, markets, channels of distribution and even claims (such as “interoperability”) that were not considered at trial, much less found to relate directly to any violation of law. The company expects to file a more detailed response to the government’s proposals as the remedy process moves forward.

As requested by the Court, Microsoft also filed its recommendations for remedies that would address the violations identified by the Court’s April 3 decision, recognizing that the company disagrees with many of the Court’s rulings and plans to appeal.

“While we may disagree with the Court’s decision, our proposal shows that there are ways to address all of the violations the Court found, without resorting to the government’s excessive demands,” Ballmer said.

“The government’s proposals should concern anyone who cares about the future of the American high-tech industry. The government’s proposals would regulate how Microsoft could design its products for consumers and restrict how Microsoft could work with other companies to develop new products or ensure that products work well together,” Ballmer added.

Microsoft’s proposal would address the specific violations found by the Court, by imposing a number of requirements on the company, including the following:

OEM flexibility. Microsoft would be required to allow computer manufacturers to (a) delete the Internet Explorer icon from the Windows desktop and Start menu, (b) offer their own Internet sign-up process in the initial Windows boot sequence, (c) display icons for non-Microsoft platform software products on the Windows desktop, and (d) configure non-Microsoft Web browsing software as the default browser.

Contracts. Microsoft would be enjoined from entering into contracts to promote any product or service through Windows in exchange for the other party agreeing to limit distribution of non-Microsoft platform software.

Access to APIs. Microsoft would be enjoined from denying any independent software developer timely and complete access to the technical information Microsoft makes available to the software development community at large. The company would also be enjoined from conditioning the release of information on a developer’s agreement not to support a non-Microsoft platform.

Release of products for non-Microsoft platforms. Microsoft would be enjoined from withholding the release of any software product designed to run on a non-Microsoft platform that is ready for commercial release in order to urge the vendor of the platform to limit the development, manufacture, distribution or promotion of a platform software product that competes with Microsoft.

Predecessor operating systems. Whenever Microsoft releases a major Windows operating system such as Windows 95 or Windows 98, the company would be required to make the predecessor operating system available to computer manufacturers at a royalty no higher than the existing royalty.