ROANOKE TIMES

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, February 15, 1995                   TAG: 9502150079
SECTION: NATL/INTL                    PAGE: NATL/ITNL   EDITION: METRO 
SOURCE: Seattle Post-Intelligencer
DATELINE: WASHINGTON                                LENGTH: Short


MICROSOFT DECREE REJECTED

In a stunning decision certain to send shock waves through the software industry, a federal judge Tuesday rejected the antitrust settlement negotiated between the Justice Department and Microsoft.

U.S. District Judge Stanley Sporkin ruled that the proposed settlement failed to correct damage done to the economy by the software giant's monopolistic practices.

In a 45-page opinion issued late Tuesday, Sporkin said ``the court cannot find the proposed decree to be in the public interest. ... The scope of the decree is too narrow.'

``Simply telling a defendant to go forth and sin no more does little or nothing to address the unfair advantage it has already gained,'' he declared. ``The decree is too little, too late.''

The ruling left the Justice Department with the choice of appealing to a higher court; taking Microsoft to trial on its antitrust allegations, which would be a long and costly process, or trying to renegotiate with Microsoft a settlement that Sporkin would accept, which would take deft footwork.

The judge set a hearing for March 16 to consider the case again.

A Microsoft spokeswoman said the company was ``obviously disappointed'' by the ruling. The company has steadfastly maintained that it has broken no antitrust laws and that the company enjoys no authentic monopoly power in the fast-changing computer industry.

It is extraordinary for a court to reject an antitrust settlement, although federal courts do have a role in reviewing and approving such pacts.



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