Joel Kein, assistant attorney general at the US Department of Justice said: “The court’s order is the right remedy for Microsoft’s serious and repeated violations of the antitrust laws.”
Bill Gates said the ruling shows “the government can take away what you have created if it proves to be too popular.”
Gates continued, “Microsoft has a very strong appeal, because this decision flies in the face of higher court decisions... It’s also very unreasonable in terms of breaking the company up and preventing us from doing creative work. Finally it flies in the face of what consumers experience every day in terms of better products at lower prices.”
The judge said he “reluctantly” concluded a break-up is required because Microsoft refuses to concede that it improperly used its monopoly in operating systems to restrict competition for internet browsers. He described Microsoft’s proposed alternative of limited restrictions on its business practices as “plainly inadequate.”
Judge Jackson said in his court order: “There is credible evidence that Microsoft, convinced of its innocence, continues to do business as it has in the past and may yet do to other markets what it has already done in the PC operating system and browser markets.”
Judge Jackson also said Microsoft has “proved untrustworthy in the past” and stated, “Microsoft, as it is presently organised and led, is unwilling to accept the notion that it broke the law.”
Restrictions were imposed on Microsoft. It must file numerous reports with the court, create an antitrust compliance committee, permit computer equipment makers to modify part of Windows and provide source coding to other software developers.
Jackson also imposed interim relief to take effect during the appeals process. This includes a requirement that Microsoft keep the operating system and application businesses separate. Gates said Microsoft will seek to stay the interim relief during appeal.
Gates added that Microsoft has strong “legal, factual and procedural” grounds for overturning the divestiture order. “We are quite confident this won’t be something that comes into effect.”