South Carolina Withdraws from Microsoft Case

(December 8, 1998)  South Carolina announced its withdrawal from the antitrust suit against Microsoft, citing the pending merger between AOL and Netscape as evidence of the competitiveness of the industry.

On May 18, 1998, nineteen states, including South Carolina, filed a Sherman Act antitrust suit against Microsoft in U.S. District Court in Washington DC. On the same day, the Department of Justice filed a substantially similar suit against Microsoft.  Judge Thomas Jackson almost immediately ordered the consolidation of the states' case with the Department of Justice's case.

Charles Condon, Attorney General of South Carolina, released a statement on Monday which explained the reasons for withdrawing:

"Recent events have proven that the Internet is a segment of our economy where innovation is thriving. The merger of America Online with Netscape and the alliance by those two companies with Sun Microsystems proves that the forces of competition are working. Further government intervention or regulation is unnecessary and, in my judgment, unwise."

Condon continued:

"Therefore, South Carolina is withdrawing from the Microsoft antitrust action. I can no longer justify our continued involvement or the expenditure of state resources on a trial that has been made moot by the actions of the competitive marketplace. The Internet economy is the place where the winners and the losers of this competition will rightfully be decided."

The states have been represented in the suit by Stephen Houck from the New York State Attorney General’s Office.  However, his role has been minor; he has been greater overshadowed by the Department of Justice's lead attorney, David Boies.

South Carolina is the first state to withdraw.