States revise Microsoft case
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July 17, 1998: 4:34 p.m. ET
Group drops investigation of Office to prepare for Sept. 8 court date
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NEW YORK (CNNfn) - State attorneys general preparing an antitrust case against Microsoft Corp. filed an amended complaint Friday, refining their case in advance of a Sept. 8 court date.
New York Attorney General Dennis Vacco said the amended complaint, filed Friday in Washington, D.C., sharpens the focus to concentrate on alleged anticompetitive practices used by Microsoft in marketing its Windows operating system.
In the amended complaint, the states dropped a claim that centers around the way Microsoft markets its Microsoft Office productivity suite. The states had alleged that Microsoft uses its desktop dominance to push other products, including word processing and spreadsheet software.
"This allows the states to devote their full resources to preparing for the trial on Microsoft's conduct relating to Web browsers and operating systems," Vacco said in a statement.
A Vacco spokesman said the states are continuing the Office investigation but did not have time to prepare that part of the case adequately before the September court date. It is possible the Office portion of the case could come up again, she said.
Subpoenas are being served on Microsoft this week to get more information into the Office allegations, the spokesman said.
The states are investigating whether Microsoft uses its strength in the desktop operating system market to drive competitors out of business.
The states involved are New York, California, Connecticut, Florida, Illinois, Iowa, Kansas, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, Minnesota, New Mexico, North Carolina, Ohio, South Carolina, Utah, West Virginia, Wisconsin and the District of Columbia.
Some are comparing the case to the earlier breakups of Standard Oil and AT&T Corp. Microsoft Chairman Bill Gates contends the case is a "step backwards for America, for consumers and for the PC industry" and vowed the Redmond, Wash.-based company would prevail in court.
Gates has gathered some senators in his corner. Three senators have accused the Justice Department of improperly encouraging other nations to start their own antitrust investigations of Microsoft. Justice has denied those allegations.
Microsoft (MSFT) shares closed up 5/8 to 118 Friday.
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