Appeals Court Says 'No' to Microsoft, DOJ

A federal appeals court today denied a request by Microsoft to reconsider part of its ruling, and concurrently refused a Justice Department motion to bypass the waiting period required before the antitrust case returns to a lower court. The U.S. government and 18 states had sought to speed up the case seemingly with plans to seek an injunction delaying the October release of Windows XP.

The legal battle is set to resume later this month unless Microsoft opts to appeal to the Supreme Court, an option the company is reviewing.

An appeals court ruled in June that Microsoft had committed eight antitrust violations, including commingling Internet Explorer with Windows. The software giant wanted that portion of the ruling revisited - a move which critics have called merely a stall tactic.

Last week, the Senate Judiciary Committee decided to hold hearings this September to address concerns that Windows XP will further stifle Internet competition. Sen. Charles Schumer was most vocal about the issue, upset with Redmond's "anticompetitive practices."

Microsoft Group Vice President Jim Allchin is adamant Windows XP will meet its slated October 25 ship date, despite lawsuits filed last week by InterTrust and 10 privacy organizations to prevent the new operating system from hitting store shelves.