Issue: "California's total recall," Aug. 2, 2003
Chris StamperChris Stamper

Massachusetts hysteria

National

The Justice Department and 19 other states have settled their antitrust cases against Microsoft, yet Massachusetts presses on. Bay State prosecutors want a U.S. appeals court to punish Microsoft harder, claiming the settlement "fails to stop all of the behavior this court found illegal." They also plan a website and a telephone hotline to collect complaints about the company.

Why Massachusetts? Attorney General Tom Reilly says he's protecting his state's 3,000 software companies. Specifically, he claims Microsoft hurt one up-and-coming company that was pushing Linux, which competes with Windows. Critics suspect this is just political grandstanding for a lost cause.

Microsoft's alleged misdeeds occurred before the dot-com boom and bust. Much of the dispute hinges on whether it used its Windows market power to destroy the Netscape browser-yet the Browser Wars are history. (The once-dominant Netscape, now controlled by AOL, is basically a shell for an open-source program called Mozilla.)

Nevertheless, the sluggish economy has been more of a problem to Microsoft than have nuisance lawsuits. Two months ago, it ended stock options for employees, a signal that the company's future growth will be much slower-even though it still commands billions in cash. Microsoft reaps beaucoup bucks on its Windows and Office software packages-while its Xbox game system and MSN online service are still money losers.

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