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Two States May Seek Tougher Microsoft Remedy

By Dow Jones
09.07.2001
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WASHINGTON - Democratic Attorneys General from two of the 18 states in involved in the Microsoft antitrust case warned the Department of Justice late Friday afternoon that they might press separately for more stringent remedies in the lawsuit than those sought by the Justice Department, if necessary.

"We look forward to continuing to work with the Department of Justice in the proceedings that are about to begin in the trial court, but will, if necessary to protect the public, press for remedies that go beyond those requested by the Department of Justice," said a statement from New York's Eliot Spitzer and California's Bill Lockyer.

The statement from two of the largest states involved in the Microsoft case "is a clear message to the Justice Department" to push hard for a tough remedy, said a person familiar with the state attorneys general. "It's a real shot across the bow."

As parties to the case, Lockyer and Spitzer could continue to press independently for a breakup or other remedies before District Court Judge Colleen Kollar-Kotelly as the case moves to her courtroom for the remedy phase of the trial.

The statement came a day after the Justice Department announced it would no longer seek a breakup of the company in the District Court. A senior Justice Department antitrust official said the decision was in no way a retreat, but instead represented an effort to stop anticompetitive behavior by Microsoft quickly.

The official said the ruling by the U.S. Court of Appeals that sent the case back to the District Court made it unlikely that the government would ultimately win a breakup remedy. And continuing to press on another count remanded by the Appeals Court, that Microsoft illegally tied its Internet browser to Windows, could take months with little hope of success at the end, the official said.

Iowa Attorney General Tom Miller, who is leading the 18 states, issued a statement Thursday announcing support for the Justice Department's decision. Spitzer and Lockyer's statement showed that the two are willing to break with the other attorneys general if need be.