Microsoft And DOJ Head To Appeals Court

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April 20, 1998 (5:11 PM EDT)

By Mary Mosquera,

Microsoft and the Department of Justice are set to face off in court Tuesday over Microsoft's bundling of its Internet browser with its operating system.

Attorneys for both sides will present oral arguments to the U.S. Court of Appeals in Washington, D.C. Microsoft (company profile) is appealing Judge Thomas Penfield Jackson's December ruling to separate the Internet Explorer browser from the Windows 95 OS. "This case is about consumer choice, competition, and innovation -- and we're going to court to protect that," said Justice Department spokesman Michael Gordon.

Microsoft is appealing the ruling for some of the same reasons. "If the preliminary injunction is allowed to stand, it will set a very dangerous precedent because it threatens every American technology company's right to innovate and define what goes into its products," said William Neukom, Microsoft senior vice president for law and corporate affairs.

But lately, speculation that the DOJ may bring a larger antitrust suit against Microsoft has received more publicity than the issues to be discussed in court Tuesday. Microsoft and DOJ attorneys met recently, setting off rumors the government is about to slap the company with an antitrust suit, or the two sides are negotiating remedies to ward off a suit before Microsoft unveils the next version of its OS, Win 98. That product is to be shipped to computer manufacturers May 15, and will be available to consumers June 25.

The appeals case will be heard before federal judges Patricia Wald, Stephen Williams, and A. Raymond Randolph. Wald was appointed by President Jimmy Carter, Williams by President Ronald Reagan, and Randolph by President George Bush.

The court will also hear arguments on the appeal of the appointment of a special master in the case.