Out-Law / Your Daily Need-To-Know

A US federal appeals court yesterday refused to allow a rehearing in the Microsoft antitrust case. Microsoft had asked the court to re-examine certain aspects of its earlier court decision, in which it overturned an order to split the company but upheld a finding that it abused its monopoly position by bundling its Explorer internet browser software with its Windows operating systems.

In yesterday’s decision, the Appeals Court also rejected a request from the US Department of Justice to have the case sent back to a lower court immediately rather than enduring a mandatory 52-day waiting period. If the immediate referral had been granted, the government may have been in a position to delay the launch of the new Windows XP operating system, scheduled for October. Microsoft’s request for review by the appeals court has been viewed by some as a tactic intended to delay further proceedings until after the launch of XP.

The case will return to the trial court for alternative remedies to be found for Microsoft’s monopoly abuse, unless Microsoft appeals the most recent ruling to the Supreme Court which it must do within seven days.

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