Microsoft Accepts 'Common Sense' Restrictions

Reports suggest that Microsoft will formally
reject the Department of Justice's plans to break up the company, saying that the requirement is a "regulatory death sentence." Today's
Wall Street Journal (WSJ) said, however, that Microsoft is willing to concede on other points, acceding to "common sense" restrictions on
its conduct to meet the DoJ's antitrust claims.

In its defense against DoJ and European Union (EU) investigations,
Microsoft has consistently argued its corner by saying that although
it enjoys healthy sales of its operating system and allied software,
its hold on the market is not a monopoly.

However, the WSJ said that Microsoft may now be climbing down off
its defensive high horse and is prepared to meet regulators on middle
ground.

The WSJ, citing an e-mail to Congress on Friday, said that the
software giant will return to federal court next week for the closing
arguments in its long-running antitrust case.

The paper said that a "commonsense" settlement will be made in the
next few days. It noted, however, that "without a substantial shift
by one side or the other, the talks are not likely to produce an
agreement before the two sides return to court for the trial's final
round."

In a letter to Attorney General Janet Reno and Microsoft President
Steve Ballmer, Democratic Senatorial campaign committee chairman
Robert Torricelli, D-N.J., asked the two to resolve the matter in a
way that "would be in the best interests of consumers, the industry
and our nation's global leadership in technology."

If the court ultimately finds for the government, the judge in the
case could impose any number of sanctions on Microsoft. Possible
sanctions could include a breakup of the software giant into separate
entities to handle its Windows and Microsoft software products, such
as word processing and spreadsheet programs.

Another solution that has been discussed - and could well be a likely
settlement option - would be to force the company to disclose its
"source code," a move that could encourage competition by allowing
other software makers to develop their own versions of the popular
Windows operating system.

Microsoft's Web site is at http://www.microsoft.com.