In the US, Judge Thomas Penfield ruled that Microsoft had illegally exploited its monopoly position against the Netscape Internet browser. The remedies are a break-up of the Microsoft Corporation, or a conduct remedy, such as forcing Microsoft to reveal its codes to other software suppliers. The latter remedy is difficult to enforce.
Neither will happen soon. Microsoft announced that it is to launch a lengthy appeal. This is widely seen as playing for time, bearing in mind that circumstances change quickly in this high technology market. Indeed, the original dispute has already changed, as Netscape is part of AOL which is now part of the recent mega-merger Time-Warner. It is difficult to show that one company is bullying a bigger company. Also software being offered on the Internet could seriously challenge Microsoft’s dominant position.
Despite all these considerations, the ruling wiped $100 billion of the value of Microsoft stock. This, in turn, triggered a general fall in technology stocks.
Meanwhile Microsoft continues to promote Windows 2000, its new operating system. It is probably one of the few products to be marketed on the basis that it fails less frequently than the previous versions.
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