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Technology
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No delay in Microsoft case
graphic January 7, 2002: 1:23 p.m. ET

Judge says case will proceed March 11, as originally scheduled.
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NEW YORK (CNN/Money) - A federal judge Monday denied Microsoft's request for a four-month delay of court proceedings that will determine what sanctions will be taken against the company as a remedy for antitrust violations.

The judge also refused to narrow the range of remedies proposed by a group of states that have not signed on to a settlement agreement forged by the U.S. Justice Department.

At a hearing in Washington, U.S. District Court Judge Colleen Kollar-Kotelly said that the next phase of the case will begin on March 11, as originally scheduled.

In November, the Justice Department hashed out a settlement with the software maker that imposes a series of restrictions on Microsoft's business conduct and, among other things, requires the company to take steps to give computer makers more freedom to feature rival software on their machines.

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  graphic CNNfn's Steve Young reports from Washington on the denial of Microsoft's request to delay hearing.

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Nine of the states that originally had joined in the Justice Department's lawsuit against Microsoft have signed on to that plan.

But nine other states say the Justice Department's proposal is not tough enough and contains too many loopholes. In early December, they proposed tougher sanctions against Microsoft.

Among other things, those states want Judge Kollar-Kotelly to order Microsoft to sell a cheaper, stripped-down version of its Windows operating system. They also are asking for stricter oversight of Microsoft's business practices.

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Arguing that the holdout states' proposal reflects a "dramatic expansion" of the possible sanctions against the company and saying it was having

difficulties obtaining documents and interviews from some companies named as witnesses in the proceedings, Microsoft asked for a delay so its attorneys could adequately prepare.

Click here for CNN/Money's special report: Microsoft on trial

The company also asked the judge to narrow the range of the proposed remedies.

Judge Kollar-Kotelly denied both those requests Monday. She called the current scheduled "workable," and said she expects the parties to adhere to it.

The judge also said that if any of the companies from whom Microsoft said it was having difficulty obtaining documents did not cooperate, they would not be allowed to testify during the upcoming proceedings. Many of those companies are Microsoft competitors.

"We'll work hard to meet the schedule laid out in court and appreciate the court's insistence on full cooperation [from witnesses for the holdout states]," said Microsoft spokesman Vivek Varma.

Judge Kollar-Kotelly also said she will not consider any of the Justice Department's proposed remedies until after considering all the items listed in the holdout states' plan.

Shares of Microsoft (MSFT: up $0.59 to $69.49, Research, Estimates) were higher in early-afternoon Nasdaq trade. graphic


-- CNNfn's Steve Young contributed to this report.





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