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DOJ seeks Microsoft fine
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October 20, 1997: 1:36 p.m. ET
Microsoft stands in contempt of 1995 consent decree, Justice's Reno says
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NEW YORK (CNNfn) - The U.S. Justice Department Monday said it is seeking to hold Microsoft Corp. in contempt of a 1995 consent decree for alleged anti-competitive behavior in the Internet browser market.
At a news conference Monday Attorney General Janet Reno said the government will ask a federal court to impose penalties of as much as $1 million-per-day on the software giant.
"Microsoft is unlawfully taking advantage of its Windows monopoly to protect and extend that monopoly," Reno said.
The Department said Microsoft's business practices since the agreement represent a clear and serious violation of the terms of the pact.
The 1995 consent decree was aimed at barring Microsoft from imposing anticompetitive terms in its contracts with computer equipment manufacturers that preinstall Microsoft software.
The unexpected announcement from U.S. Justice Department's antitrust division had an immediate effect on trading in Microsoft's stock.
After gaining more than 3 points, the stock (MSFT) was down 3-1/4 to 129 following the press conference. Shares of Netscape Communications Corp. (NSCP) shot 6-7/16 points higher to 41-3/8.
Microsoft officials were not immediately available to comment.
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