Antitrust & Trade Practices News

Senate Commerce Committee Holds Hearing on Muris Nomination. (5/16/01) The Senate Commerce Committee held a hearing on the nomination of Timothy Muris to be Chairman of the Federal Trade Commission. The hearing, which covered several other nominees as well, went smoothly for Muris, and all nominees. Republicans and Democrats expressed their support. Members questioned Muris about both online privacy and antitrust enforcement, but he said little in response.

FCC Approves AOL Time Warner Merger. (1/12/01) The FCC approved the merger of AOL and Time Warner with conditions regarding open access to broadband cable Internet access and interoperability of advanced instant messaging services.

Microsoft and Amici File Briefs with Court of Appeals. (11/28/00) Microsoft, and two technology trade groups, filed their briefs with the Court of Appeals urging reversal of District Court Judge Jackson's Final Judgment.

FTC Five Year Plan Addresses E-Commerce. (10/10/00) The FTC released a report outlining its five year plan. It addresses both protecting consumers from Internet based fraud, and applying antitrust law to electronic commerce and intellectual property.

Economist Estimates that Court Ordered Microsoft Breakup Would Cost U.S. Consumers $50 Billion. (9/25/00) Stan Liebowitz, an economics professor, released an economic analysis of Judge Thomas Jackson's breakup order in the Microsoft antitrust case, which concluded that, if the order were implemented, software prices will rise, costing American consumers at least $50 Billion over three years, and possibly much more.

FTC Official Addresses Covisint and Electronic B2Bs. (9/18/00) The FTC's Susan DeSanti gave a speech to a legal group in Washington in which she stated that the FTC is unlikely to adopt guidelines for electronic B2Bs. She also offered recommendations on how not to run afoul of antitrust regulators when creating and operating electronic B2Bs. See, Address by Susan DeSanti.

Klein Advocates a Global Competition Initiative. (9/16/00) U.S. antitrust chief Joel Klein gave a speech in Brussels in which he stated that "we should move in the direction of a Global Competition Initiative." See, Klein speech.

FTC Closes Investigation of Covisint B2B. (9/15/00) The FTC sent letters to the founders of the Covisint automotive B2B, stating that it has closed its investigation of whether Covisint violates Section 7 of the Clayton Act, and that it has terminated the Hart-Scott-Rodino waiting period.

Goodlatte and Boucher Request FCC Rule Making on Open Access, Oppose Conditions on AOL TW Merger. (9/11/00) Two of the House of Representatives leading Internet proponents, Reps. Boucher and Goodlatte, wrote a letter to the FCC and FTC on September 7 requesting that the FCC institute a formal rule making proceeding to promulgate open access rules that apply to all technologies and companies, but that neither the FTC nor the FCC impose any open access conditions in their AOL Time Warner merger reviews. See, letter.

Judge Awards Bristol $1M in Punitive Damages from Microsoft. (9/4/00) Judge Hall awarded Bristol $1,000,000.00 in punitive damages from Microsoft under the Connecticut unfair trade practices law, based upon a jury verdict that awarded Bristol $1.00 in compensatory damages.

Oracle Admits Hiring Investigators who Sought Trash of Pro-Microsoft Groups. (6/28/00) Oracle Corporation admitted on June 27 that it hired the private investigation firm with ties to the Clinton administration that attempted to pay janitors for the trash of pro-Microsoft public policy groups.

Jackson Certifies Direct Appeal to Supreme Court, Stays Judgment. (6/21/00) Judge Jackson issued an order which certifies the Microsoft appeal for direct consideration by the U.S. Supreme Court, and stays his Final Judgment pending decision on the appeal. See, Order.

Judge Jackson Issues Final Judgment in Microsoft Case. (6/7/00) Judge Thomas Jackson issued his Final Judgment in the government's antitrust action against Microsoft on June 7. He imposed the structural remedy that Microsoft be split into two companies -- one for operating systems, and one for applications. He also imposed a lengthy list of behavioral restrictions upon Microsoft. See, Final Judgment and Memorandum and Order.

Microsoft Predicts Reversal on Appeal. (6/7/00) Bill Gates and other Microsoft officers and supporters predicted that Judge Jackson's Final Judgment will be reversed on appeal.

FCC Approves AT&T MediaOne Merger. (6/5/00) The FCC conditionally approved AT&T's acquisition of cable company MediaOne. AT&T must reduce its share of MVPD subscribers to 30%. However, the FCC imposed no "open access" requirement.

Consumer Groups Seek FCC Restructuring of AOL Time Warner and AT&T Media One. (4/26/00) Several consumer groups filed a petition with the FCC on April 26 seeking restructuring of the companies involved in the AOL Time Warner merger and the AT&T MediaOne merger.

Jackson Issues Conclusions of Law; Microsoft Will Appeal. (4/4/00) U.S. District Court Judge Thomas Jackson released his Conclusions of Law and Order in the government's antitrust case against Microsoft on Monday April 3. Microsoft promptly announced that it will appeal. See, Conclusions of Law.

Senate Antitrust Subcommittee Discusses Media Mergers. (3/23/00) The Senate Antitrust Subcommittee held a hearing on antitrust issues handled by the FTC and Justice Department. Senators expressed concern about consolidation of media companies. FTC Chairman Pitofsky responded that he is not sure that there is more concentration now, due to technological developments such as the Internet.

PFF VP Recommends Four Way Break Up of Microsoft. (2/27/00) The Progress and Freedom Foundation hosted a panel discussion at the National Press Club on Friday, February 25, on remedies in the Microsoft antitrust case. PFF VP Tom Lenard proposed splitting Microsoft up into four companies -- three identical clones which would own the operating systems, and one which would own the Office suite, development tools, Internet properties, and other applications.

Economist Predicts Microsoft Breakup Would Harm Consumers and Software Developers. (2/27/00) Economist Stanley Liebowitz estimates that splitting Microsoft into three companies would result in $30 Billion in new costs to software developers, and further costs to consumers. He participated in a panel discussion on the Microsoft case in Washington DC hosted by the Progress and Freedom Foundation on February 25.

Open Access Proponents Condemn Media Mergers. (2/26/00) A group of liberal activists held a panel discussion at the National Press Club in Washington DC on Wednesday, February 23, to complain about the consequences of the mergers of AOL and Time Warner, and AT&T and MediaOne, and to demand open access to the Internet. Gene Kimmelman of the Consumers' Union stated that these present antitrust problems.

FTC Picks Fight with Appropriations Committee Chairman. (2/12/00) FTC Chairman Pitofsky, who is seeking a huge increase in the FTC's budget to expand its activities, just started a brawl with Sen. Stevens, the Chairman of the Senate Appropriations Committee, over oil company mergers. The dispute, ironically, could impact the FTC's regulation of Internet activity.

FCC Officials Meet with Bar about Antitrust Merger Reviews. (1/24/00) The FCC's Christopher Wright and James Bird met with lawyers specializing in antitrust and telecommunications law on Friday, January 21, to discuss the FCC's handling of merger reviews involving telecom and Internet companies.

Microsoft Persists That It Has Not Violated Antitrust Law. (1/19/00) Microsoft argued in its proposed conclusions of law filed with Judge Jackson on January 18 that it has not violated the Sherman Antitrust Act.

FCC Issues Statement Regarding Antitrust Merger Reviews. (1/15/00) The FCC issued a statement on Wednesday, January 12, regarding the FCC's conduct of antitrust merger reviews. The statement addresses to two frequent criticisms: that the FCC has promulgated no rules which govern its merger reviews, and that the FCC takes far too long. See, FCC Statement.

Antitrust Class Actions Filed Against Microsoft. (12/1/99) U.S. District Court Judge Jackson's findings of fact in the government's antitrust suit against Microsoft has produced an avalanche of lawsuits by class action lawyers seeking to cash in on Microsoft's troubles with the government. See for example, Complaint in eLeaders v. Microsoft and Complaint in DeJulius v. Microsoft.

Appeals Court Vacates Injunction in Intergraph v. Intel. (11/8/99) On Friday, as one federal judge concluded that Microsoft is a monopoly, another federal judge's conclusion that Intel would be found to be an illegal monopoly was reversed. The Court of Appeals vacated the U.S. District Court Judge Edwin Nelson's preliminary injunction in Intergraph v. Intel. See, Appeals Court Opinion.

Judge Jackson Finds that Microsoft Has a PC OS Monopoly. (11/6/99) U.S. District Court Judge Thomas Jackson released a 207 page Findings of Fact on Friday, November 6, in which he concluded that Microsoft has a monopoly in Intel-compatible PC operating systems. Judge Jackson did not reach any legal conclusions, or impose any penalties or remedies.

GTEi Files Antitrust Suit Against Cable Companies Over Open Access. (10/28/99) GTEi filed a lawsuit in U.S. District Court on October 25 against TCI, Comcast, and At Home alleging that bundling broadband data transport service with ISP service violates the Sherman Antitrust Act. GTEi's complaint requests money and an injunction. See, Complaint.

Intergraph Files Motion to Compel Intel to Comply with Preliminary Injunction Order. (8/26/99) Intergraph filed a motion with the U.S. District Court seeking an order compelling Intel to cease its alleged non-compliance with the Court's preliminary injunction order. Workstation maker Intergraph sued its chip supplier Intel in late 1997 on various antitrust, patent, and fair competition theories. It now seeks the appointment of a special master to oversee Intel's compliance with the order, as well as sanctions. Trial is set for mid 2000. See, Motion to Compel.

Commissioner Says FCC Extorts Companies with Non-existent Merger Review Authority. (7/23/99) The FCC is using merger review authority which it does not have to extort companies, said FCC Commissioner Harold Furchtgott-Roth at a Federalist Society event in the Capitol Building on Thursday, July 22. See, transcript of address.

Jury Verdict for Microsoft in Bristol Antitrust Case. (7/17/99) The federal trial jury in Connecticut sitting in the antitrust case brought by Bristol Technologies against Microsoft returned a verdict for Microsoft on all federal and state antitrust claims on July 16. The jury awarded Bristol $1 on a state unfair trade practices claim.

Microsoft and Government File Lists of Rebuttal Witnesses. (5/3/99) Microsoft filed its list of rebuttal witnesses to be called in the antitrust suit filed by the government last May. The May 3, 1999 filing names David Colburn, of AOL, Gordon Eubanks, of Oblix, and Richard Schmalensee, of MIT. See, Microsoft's Witness List.

FTC and Intel Reach Tentative Settlement. (3/8/99) Lawyers for the Federal Trade Commission and Intel have executed a proposed consent agreement in settlement of complaint brought last July by the FTC that Intel has violated antitrust law. The administrative trial of the matter had been scheduled to start on Tuesday, March 9. Neither the agreement, nor its contents, were released. The agreement also has yet to be approved by the Commissioners of the FTC.

Pitofsky Addresses Antitrust Law and High-Tech. (3/2/99) FTC Chairman Robert Pitofsky addressed an American Bar Association meeting on antitrust law and high-tech industries on February 25. Pitofsky stated that "I believe antitrust should - indeed must - continue to apply," to high-tech industries. He also said that "breaking up" and "mandating access" to competitors are possible remedies. See, copy of Pitofsky speech.

Daley and Pitofsky Hold Joint Press Conference on E-Commerce and Privacy. (2/6/99) Secretary of Commerce William Daley and FTC Chairman Robert Pitofsky held a press conference on Friday, February 5, to announce that the Department of Commerce will start keeping annual statistics on commercial sales on the Internet. Currently, Internet sales are included in the catalogue sales category. Both men also reiterated that industry should take the lead on privacy issues, through self-regulation. Both were silent on encryption. Pitofsky also addressed antitrust enforcement in the context of online commerce.

Judge Denies Bristol's Motion for Preliminary Injunction. (1/7/99) U.S. District Court Judge Janet Hall denied Bristol Technologies' Motion for Preliminary Injunction against Microsoft on December 30. However, she set an early trial date for this antitrust suit -- June 1, 1999. See, copy of ruling.

Appeals Court Hears Argument in Intel v. Intergraph. (12/12/98) The U.S. Court of Appeals for the Federal Circuit heard oral argument on Wednesday, December 9, in the antitrust action brought by workstation maker Intergraph against chipmaker Intel. Intel has appealed the April 10, 1998, preliminary injunction issued by Judge Nelson.

Hearing in Intel Antitrust Case Set for February. (12/9/98) The administrative hearing in the FTC's antitrust action against Intel is schuduled to begin on February 23, 1999, in Washington DC, and could last for six weeks. FTC Administrative Law Judge James Timony is presiding.

South Carolina Withdraws from Microsoft Case. (12/8/98) 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. See, statement of South Carolina Attorney General.

AOL to Buy Netscape, and Contract with Sun. (11/24/98)  America Online and Netscape Communications announced today that the online service company will acquire the browser, e-commerce, and portal company in a stock exchange valued at $4.2 Billion. Simultaneously, AOL and Sun Microsystems announced a three year alliance to develop e-commerce products. Microsoft hailed the deals as proof that it faces vigorous competition in the marketplace, despite allegations to the contrary by antitrust prosecutors.

Pitofsky Wants to Change Antitrust Law for High Tech. (11/15/98) Robert Pitofsky, Chairman of the Federal Trade Commission, stated at a legal convention in Washington DC on November 14 that the U.S. Court of Appeals decision in the Microsoft case is "wrong", and that the antitrust law ought to be different. The Department of Justice, rather than the FTC, is prosecuting Microsoft. However, the FTC is currently prosecuting Intel for alleged violation of antitrust law. See, copy of speech.

Furchtgott-Roth Criticizes FCC's Inconsistent Application of "Public Interest" Standard to Telecom Mergers. (11/12/98)  FCC Commissioner Harold Furchtgott-Roth criticized the FCC's "discriminatory" application of its "public interest" standard in big telecom company mergers during a panel discussion in Washington DC sponsored by the Federalist Society.

Judge Hall Concludes Injunction Hearing in Bristol Case. (10/30/98) U.S. District Court Judge Janet Hall completed protracted hearings and oral argument on Wednesday, October 28, on Bristol Technology's motion for a preliminary injunction in its antitrust suit against Microsoft. She has not yet ruled, but attorneys in the case expect a prompt decision. Bristol is seeking immediate access to Windows NT source code.

Judge Denies Microsoft More Time & Gives DOJ Access to MS Financial Databases. (10/12/98) Judge Thomas Jackson conducted a final pretrial conference on Friday, October 9, in the Department of Justice's antitrust action against Microsoft. He ruled that the start of the trial will be delayed four days, from October 15 to October 19. He also ruled that Microsoft must promptly give the government access its computer systems to search through its financial databases. See, Orders issued by Judge Jackson.

Bristol Files Reply Brief in Suit Against Microsoft. (10/6/98) Bristol Technology, Inc., filed a large reply yesterday to Microsoft's opposition to its motion for a preliminary injunction. Bristol's claim that Microsoft has violated antitrust law was supported by sworn testimony from an officer of Microsoft's competitor Sun Microsystems.

Judge Orders Oracle to Produce Some Records in Microsoft Case. (9/30/98) Judge Thomas Jackson ordered Oracle to produce some of the records which Microsoft had sought under a subpoena in the government's antitrust case which is set to go to trial on October 15. See, copy of Order.

Microsoft Opposes Bristol Preliminary Injunction Motion. (9/30/98) Microsoft filed its opposition to Bristol Technology's motion for a preliminary injunction in federal court in Connecticut on Friday, September 25. Microsoft released a redacted public version of its brief on Monday. Microsoft denies that it has violated any antitrust law, and argues that Bristol is simply trying to gain an advantage in ongoing contract negotiations regarding access to Windows NT 4.0 and 5.0 source code.

DOJ Files Appeal Brief on Depositions Issue.  (9/23/98) The Department of Justice filed its brief with the Court of Appeals yesterday arguing that depositions in the Microsoft antitrust case should be open to the press and public. While the decision of the Court of Appeals is not likely to affect the taking of depositions in the current case, it could affect depositions in subsequent government actions against Microsoft. Also at issue is whether the press will be able to get copies of deposition transcripts. See, Brief for Appellee.

Jackson Denies Microsoft's Request to Limit Trial Issues.  (9/17/98) Microsoft filed a pleading with the U.S. District Court in Washington DC late on Wednesday, September 16, asking the court to exclude from the trial six issues recently raised by the government. Judge Thomas Jackson denied it the request early on Thursday. See, Microsoft's Statement of Extraneous Issues.

Judge Denies Summary Judgment, Delays MSFT Trial. (9/15/98) U.S. District Court Judge Thomas Jackson yesterday denied almost all of Microsoft's Motion for Summary Judgment, and put off the start of the trial until October 15.

FCC Finally Approves MCI WorldCom Merger. (9/15/98) The Federal Communications Commission approved the merger of MCI and WorldCom on Monday, September 14.

Judge Hears Microsoft's Motion for Summary Judgment. (9/14/98)  U.S. District Court Judge Thomas Jackson held a lengthy hearing on Microsoft's Motion for Summary Judgment on Friday, September 11. Afterward, Judge Jackson met privately in his chambers with the lead attorneys. However, he did not rule on the motion, and made no other announcements.

Microsoft Files Reply Brief. (9/9/98) Microsoft filed its Reply to the DOJ's Opposition to Microsoft's Motion for Summary Judgment with the U.S. District Court in Washington DC on Tuesday, September 8. The next step in this summary judgment proceeding is oral argument before Judge Thomas Jackson on September 11. See, copy of Reply Brief.

DOJ and Microsoft File Their Lists of Trial Witnesses. (9/7/98) The Department of Justice and Microsoft both filed their witness lists with the U.S. District Court on Friday, September 4.  The lists, which are limited to twelve by a pretrial order of Judge Jackson, contained few surprises. Neither side plans to call Bill Gates to testify. The trial might start on September 23. See, DOJ Witness List and Microsoft Witness List.

Judge Orders Microsoft to Produce Documents. (9/4/98) U.S. District Court Judge Thomas Jackson ordered Microsoft to produce certain documents requested by the Department of Justice which pertain to its newly raised allegations.  Judge Jackson put off deciding whether this evidence will be admissible at trial. He also put off the question of whether the trial will be delayed by the addition of these allegations.

Microsoft and DOJ Argue Over DOJ Attempt to Expand Antitrust Case. (9/3/98) Microsoft and the Department of Justice both filed motions yesterday related to the government's eleventh hour attempt to expand its antitrust case to include allegations about Microsoft's dealings with Intel and Apple and other matters not included in the Complaint filed on May 18. See, DOJ's Memorandum and Microsoft's Memorandum.

DOJ Opposes MSFT Motion for Summary Judgment. (9/2/98) The Department of Justice filed a massive brief late Monday in U.S. District Court in Washington which opposes Microsoft's motion for summary judgment, and raises new allegations against Microsoft. See, HTML Copy of DOJ Opposition Brief.

See Also, Archived Antitrust News:

• February - May, 1998.
• June - August, 1998.