Microsoft Breakup Report "Inaccurate"
USA Today reporter Paul Davidson said that the US Justice Department
and 19 state attorneys general have arrived at the conclusion that
the Redmond, Wash.-based software behemoth should be broken up into
several smaller companies as a remedy for harmful monopolistic
practices.
He cited sources familiar with the situation.
"The story is inaccurate in several important respects," Justice
Department Spokeswoman Gina Talamona told Newsbytes. "It does not
accurately reflect our views."
Talamona declined to provide any more specific comments on the case.
Microsoft spokesman Jim Cullinan told Newsbytes that, "We can't really
speculate on what the government may be thinking. We have stated all
along that we're not going to comment on anything (having to do) with
mediation. It's completely inappropriate and counterproductive to be
talking about the mediation process."
Cullinan echoed Microsoft spokesman Mark Murray's previous comment
that the "notion of breaking up Microsoft is an extreme and radical
proposal that is not justified by anything in this case. It would be
harmful to consumers, developers and the industry as a whole."
Already consumers groups are beginning to chime in on the
USA Today report.
Citizens for a Sound Economy Director of Technology Policy Erick
Gustafson said in a statement that "The Justice Department's
announcement causes one to wonder whether the government's lawyers
have read the papers, turned on the TV or logged onto the Internet
in the past few days."
"The $165 billion AOL-Time Warner deal clearly demonstrates that
Microsoft's competitors remain strong and that the new digital
economy continues to provide limitless possibilities for
entrepreneurs to grow and prosper," Gustafson added.
USA Today reported that government lawyers had reached a
"consensus approach" that would split Microsoft into one
company that would sell the Windows operating system, as well
as another company for software development.
USA Today also reported that it is unclear whether Microsoft
would be asked to form a third company for Internet sites,
as well as whether Microsoft would be required to remove the
Internet Explorer Web browser from Windows.
The newspaper also reported that some prosecutors oppose allowing
the Windows monopoly to remain in the hands of one company.
Reported by Newsbytes.com, http://www.newsbytes.com.