Microsoft's big court date
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May 20, 1998: 7:49 a.m. ET
Software giant could lose momentum if judge honors U.S. call for action
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NEW YORK (CNNfn) - Just four days after U.S. regulators dragged Microsoft Corp. into court in the biggest antitrust case in a generation, the company will have its first day of reckoning: a hearing before U.S. District Court Judge Thomas Penfield Jackson on Friday.
In that status hearing, the court will set a date to hear a government request for an early injunction against the Redmond, Wash.-based software maker. The outcome will set the tone for the rest of the antitrust suit.
The Justice Department, 20 states and the District of Columbia filed a major antitrust suit against Microsoft Monday, charging it illegally choked its competition.
Judge Jackson will have to examine first whether the government's case has a chance of winning and then determine if consumers will be harmed if no injunction is in place right away.
Published reports suggest that for Microsoft, a worst-case scenario would be to require it to include Netscape Communications Inc.'s rival Navigator web browser alongside its own when it ships Windows 98.
But at the same time, if no aggressive injunction comes down, it may signal a reprieve of sorts for Microsoft. A lawsuit will take years to play out.
In its four-part call for an injunction, Justice wants the court to stop Microsoft from forcing computer makers to put its browser on their machines to get Windows. The government also wants PC makers to have more choices about installing browsers.
Justice wants Microsoft to let computer makers choose their own start-up screens and to halt the company's enforcement of its deals with Internet content providers to limit their promotion of competing browsers.
The greatest likelihood, legal experts said, is that the government's requests will be honored in part.
Meanwhile, Justice has asked Congress for a bigger budget for its antitrust watchdog, which is leading the case against Microsoft.
Antitrust division chief Joel Klein requested more money Tuesday from Congress to allow him to boost his staff of 275 lawyers to carry out the Microsoft suit and other regulatory actions.
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