Microsoft case enters next phase

LEGAL WRANGLING: Microsoft files papers to delay the effect of the judge's orders. A Justice official says they're willing to talk.

©Associated Press

© St. Petersburg Times, published June 9, 2000

WASHINGTON -- As Microsoft Corp. sought a stay Thursday of a federal judge's order breaking the company in two, the Justice Department's antitrust chief said a settlement remains an option.

The government "is prepared to engage in meaningful settlement negotiations" to avoid lengthy appeals of Wednesday's court order, said Joel I. Klein, head of the antitrust division. But he also said it was imperative "that a settlement meaningfully address the harm that's occurred to this market."

Microsoft spokesman Jim Cullinan accused Klein of "simply posturing with his comments" and said the company would only be interested in talks that would "preserve our freedom to innovate and . . . preserve the integrity of our products."

In addition to splitting Microsoft into two companies -- one for operating systems and the other for other software and Internet properties -- Jackson also imposed restrictions on Microsoft's business practices, due to take effect in 90 days. Microsoft filed court papers asking Jackson to delay the effect of his decision while the software company pursues an appeal.

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