Microsoft was required by Judge Jackson to make a remedy proposal that addressed the violations found by the Court, but we argue today that the company did nothing of the sort. Instead, Microsoft offered a cosmetic remedy that would have virtually no competitive significance.
The Microsoft proposed remedies would neither undo the harm that Microsoft inflicted on competition nor prevent Microsoftfrom illegally using its monopoly power to inflict similar harm in the future.
On April 28, the States and US Justice filed an effective set of proposals to address the Court's conclusion that Microsoft violated the Sherman Act by a wide pattern of exclusionary conduct that injured rivals, raised entry barriers, impaired consumer choice, and retarded innovation. Microsoft's reply attempts to avoid the need for meaningful relief by pretending that its conduct had no such harmful effect - contrary to the evidence at trial and the Court's explicit findings.
We argue that, given Microsoft's failure to come to terms with the Court's rulings, it is now more apparent than ever that structural relief recommended by 17 states and the USDOJ - accompanied by interim conduct remedies needed to allow structural relief to work - may be the only remedy that has a chance of ending Microsoft's persistent unwillingness to abandon its widespread use of unlawful practices to maintain and extend its Windows monopoly.
What remedy does Microsoft propose to undo the damage to competition caused by its past illegal conduct? Nothing. And Microsoft offers no factual support for any of its objections to the governments' proposed remedies.
Iowa Attorney General Tom Miller, leader of the Microsoft Working Group, said: "Apparently, Microsoft is still in denial. It has yet to face up to the harm it has done, and it willfully misunderstands what the remedy is for. The purpose of the remedy is to restore to the marketplace the competitive dynamic that Microsoft has suppressed. Restoring competition is the only way to promote innovation and protect consumers. The remedy the States and the federal government have proposed will do that, without punishing Microsoft or harming Microsoft's shareholders."
"Microsoft last week proposed a cosmetic remedy wrapped in a rhetorical attack on the States and Federal enforcers," Miller said. "With our filing today, we are meeting rhetoric with reality."
brief filed jointly by the States and US Justice tackled numerous positions
taken by Microsoft in response to the government's proposed remedies,
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