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Court denies Microsoft bid
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August 2, 2001: 2:00 p.m. ET
Appeals court rejects rehearing of key antitrust finding on commingling
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NEW YORK (CNNfn) - A federal appeals court Thursday denied Microsoft's request for a rehearing on a key issue in its landmark antitrust case and said it will not speed up the time frame under which the case will be sent back to a lower court.
In a brief order, the U.S. Court of Appeals for the District of Columbia said it will not grant the software maker's request to reconsider whether Microsoft acted illegally by commingling software code for its Internet Explorer Web browser to its Windows operating system.
The court also denied the Justice Department's request that the case immediately be sent back to the U.S. District Court in Washington. Under the current schedule the case will be remanded on Aug. 12.
"Nothing in the court's opinion is intended to preclude the District Court's consideration of remedy issues," the appeals court said.
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On June 28, the appeals court overturned the district court's ruling that Microsoft be broken into two companies as a remedy for anti-competitive practices and remanded other parts of the judge's decision to the lower court for consideration by a different judge.
Although the appeals court rejected the order that the company be split in two, it upheld the lower court's conclusion that Microsoft has a monopoly in the market for computer operating systems and maintains that monopoly power by anti-competitive means in violation of U.S. antitrust laws.
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The appeals court also upheld the lower court's conclusion that Microsoft illegally commingled the underlying software code for Windows and its Internet explorer Web browser, which the court said was done as an effort to prevent computer users from using one without the other.
Microsoft has expressed its willingness to settle the case out of court, taking steps including changing its contracts with computer makers to allow them to remove Internet Explorer from the versions of Windows they install on new PCs. But Microsoft also asked the appeals court to reconsider the commingling issue, which was the linchpin of the government's case. The software maker also has said it still is considering whether to request a Supreme Court review of the appeals court's decision.
Microsoft spokesman Jim Dessler said the company "is committed to moving forward promptly in the legal process." But he declined to comment on whether the latest turn of events makes it more likely Microsoft will seek a Supreme Court review.
Justice Department spokeswoman Gina Talamona said the department is "pleased that the rehearing was denied." 
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