THE MICROSOFT MONOPOLY

November 8, 1999
		Following this background report, Microsoft Chief Operating Officer Bob Herbold and Assistant Attorney General Joel Klein discuss in separate interviews their reactions to the judge's findings of fact.

Online Special: The Microsoft Anti-Trust Case Nov. 5, 1999: The findings of fact are released to the public. Nov. 5, 1999: Read the full-text of the judge's findings. June 25, 1999: The Microsoft trial comes to an end June 1, 1999: The Microsoft anti-trust trial resumes after a 13-week recess. Feb. 26, 1999: Microsoft wraps-up its testimony Nov. 12, 1998: National Public Radio journalist John McChesney explains case arguments. May 18, 1998: Justice Department and 20 states launch antitrust actions. May 18, 1998: Technology experts discuss how the Microsoft case will shape the industry. Browse the NewsHour's coverage of Cyberspace and Law.     Microsoft Netscape United States Department of Justice US v. Microsoft antitrust filings provided by the USDJ Time	SPENCER MICHELS: In 207 pages he wrote on the facts established at the Microsoft antitrust trial, District Judge Thomas Penfield Jackson said the company was a monopoly whose actions had done consumers harm. And, he said, the company used its power to punish competing firms. On Microsoft's power in the market, Judge Jackson wrote: "Viewed together, three main facts indicate that Microsoft enjoys monopoly power. First, Microsoft's share of the market for Intel-compatible PC operating systems is extremely large and stable. Second, Microsoft's dominant market share is protected by a high barrier to entry. Third, and largely as a result of that barrier, Microsoft's customers lack a commercially viable alternative to Windows." On Microsoft's harm to consumers, Jackson wrote: "Microsoft's actions have inflicted collateral harm on consumers who have no interest in using a Web browser at all. Microsoft has forced Windows 98 users uninterested in browsing to carry software that, while providing them with no benefits, brings with it all the costs associated with carrying additional software on a system." On Microsoft's predatory actions towards other firms, Jackson stated in his conclusion that: "Through its conduct toward Netscape, IBM, Compaq, Intel and others, Microsoft has demonstrated that it will use its prodigious market power and immense profits to harm any firm that insists on pursuing initiatives that could intensify competition against one of Microsoft's core products."
	A frenzy of news coverage
	The release of the judge's findings in what is widely considered the most important antitrust case of the computer age set off a frenzy of news coverage and analysis. ANCHOR: We're joined from Washington tonight by -- SPENCER MICHELS: Network newscasts provided live coverage from the government printing office in Washington, getting instant analysis once the findings were released. Domestic and foreign newspapers made the story front-page news all weekend. On Sunday, Microsoft Chairman Bill Gates used a full-page advertisement in several newspapers to get out his message, writing that: "Microsoft is committed to resolving this matter in a fair and responsible manner, while insuring that the fundamental principles of consumer benefit and innovation are protected." Friday's ruling sets the stage for a later ruling on whether Microsoft's actions broke the law. If Judge Jackson finds Microsoft liable, he could then move to apply remedies ranging from restrictions on the way it does business to breaking up the company. Unless the two sides can negotiate a settlement, a final decision is expected from the judge some time next year.

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