Microsoft Chairman Bill Gates said he will fight U.S. District Judge Thomas Penfield Jackson's conclusion of fact that Microsoft Corp. violated the Sherman Antitrust Act by mounting a "deliberate assault" on Internet browser competition, specifically Netscape Communications, according to a variety of news reports.
Jackson's 43-page ruling used stinging rhetoric to describe Microsoft's stronghold on the Web browser market, asserting that "Microsoft maintained its monopoly power by anti-competitive means."
The argument stems from Microsoft's decision to include its Web browser, Internet Explorer, in its Windows operating system program. The move made it virtually impossible for other companies, especially Netscape, to compete for customers in the Web browser market.
"Together, the proof of dominant market share and the existence of a substantial barrier to effective entry create the presumption that Microsoft enjoys monopoly power," Jackson wrote.
Microsoft has an estimated 95 percent of the worldwide PC operating systems market, the Associated Press reports. Its share would remain well above 80 percent even if the Macintosh operating system figures were included in that market.
United States Attorney General Janet Reno said the ruling means consumers who have been harmed can now look forward to benefits, although she did not assert what those benefits may be. Meanwhile, some industry analysts are saying the ruling is 10 years too late and that the proliferation of open source networks, such as Linux, and other innovations indicate Microsoft's hold on the market was already doomed to diminish in the coming years.
"Microsoft's past success has been built on innovation and creativity," Gates stated in a company news release. "Our future success depends on our ability to keep innovating in the fastest-moving marketplace on earth."
Jackson said he is willing to consider a settlement, "as long as it resolved the violations (he) cited," Yahoo! News reports. Microsoft Chief Executive Steve Ballmer told the Associated Press he is open to negotiations, but that his company would need to see "appropriate openness" from the government.
Sen. John McCain (R-AZ), chairman of the Senate Commerce Committee, told NBC he plans to hold hearings on the case.
"I think it is the role of Congress to assess two things," McCain told the network. "One, the impact on the consumer of such action that might have to be taken on the part of Microsoft; and, two, what is the impact of this incredible engine that's driving America's economy,"
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