FC: Sun cheers ruling in Microsoft case, suggests punishments

[Declan McCullagh <declan () well com>]

********

> Date: Mon, 3 Apr 2000 19:11:12 -0700 (PDT)
> From: Penelope Bruce <Penelope.Bruce () corp sun com>
> Reply-To: Penelope Bruce <Penelope.Bruce () corp sun com>
> Subject: Sun Microsystems Applauds Judge Jackson's Ruling in the Microsoft 
> Matter
>
> Below is the press release Sun Microsystems issued late this afternoon
> regarding Judge Jackson's ruling in the Microsoft federal antitrust
> case.
>
> If you have any questions, please give me a call.
>
> Penny
>
> =======================================================================
>
> FOR IMMEDIATE RELEASE
>
> FOR MORE INFORMATION                 CONTACT:
>                                      Penny Bruce
>                                      Sun Microsystems, Inc.
>                                      (650) 786-7220
>                                      penelope.bruce () corp sun com
>
>
> SUN MICROSYSTEMS APPLAUDS JUDGE JACKSON'S RULING IN THE MICROSOFT
> MATTER
>
> Sun Proposes Remedies for Microsoft to Ensure Restoration of
> Competition and Innovation in the Marketplace
>
> Palo Alto, CA -- April 3, 2000 -- Sun Microsystems, Inc. today stated
> it welcomed Federal District Court Judge Thomas Penfield Jackson's
> verdict in the Microsoft federal antitrust case.
>
> Judge Jackson's earlier findings of fact exposed the wealth of evidence
> supporting his determination that Microsoft has monopoly power in the
> market for PC operating systems and has abused its power in very
> significant ways.  With his verdict of guilt today, Judge Jackson has
> found that Microsoft's acts broke United States antitrust law.
>
> "Today's important decision confirms what almost everybody in the world
> knows -- Microsoft is a monopoly that has acted illegally," said Scott
> McNealy, Chief Executive Officer, Sun Microsystems, Inc.  "The Justice
> Department and the States deserve immense credit for putting together a
> case that so clearly showed Microsoft's true colors.  Now is the time
> to move on to the important stage of this trial -- determining how to
> prevent Microsoft from continuing its use of monopoly power to stifle
> innovation and harm consumers.  We hope the Court will act decisively
> to ensure that Microsoft's illegal activity -- and the harm that it has
> done to the industry and to consumers -- is brought to an end
> forcefully and permanently."
>
> As the case advances to the remedies stage, Sun believes that only a
> combination of stringent structural and behavioral remedies will ensure
> that Microsoft can no longer stifle competition through the abuse of
> its monopoly power.  Specifically, Sun believes that:
>
> o Microsoft's past conduct demonstrates that behavioral remedies alone
> will not be enough to foster true competition and innovation in the
> market.  The only sure way to curtail Microsoft's monopoly in the PC
> operating systems market is with a structural approach in which
> Microsoft's applications and Internet content businesses are divested
> as separate companies and the remaining operating systems business is
> divided into three distinct and competing companies.
>
> o Microsoft must be forbidden from using its massive cash hoard to kill
> competition through minority, majority and IP technology investments.
> The company must be prohibited from using its ill-gotten gains to buy
> its way into new markets and lock in new customers.
>
> o The technology standards playing field must be leveled so that any
> company can create products that will successfully interoperate with
> Microsoft's ubiquitous operating systems and products.  This solution
> would require Microsoft to publish its programming interfaces openly
> and freely.
>
> o Microsoft must be required to make its pricing public and
> nondiscriminatory so that it cannot be used as illegal leverage.
>
> o Microsoft must be prohibited from entering into exclusive or
> preclusive agreements that require its PC OEM customers and Internet
> Access Providers to do business only with Microsoft or prohibit its
> customers from doing any business with a Microsoft competitor.
>
> "Now that the verdict is in, the next step is to address the harm that
> has been done to consumers and the industry," said Michael Morris,
> General Counsel, Sun Microsystems, Inc.  "To ensure that the remedies
> are effective, Sun believes that a combination of structural and
> conduct approaches should be imposed.  The result of our approach will
> be:  Microsoft, for the first time in over 15 years, will be subject to
> the discipline of the market, competition will be restored and
> consumers will have access to greater choice, better products and lower
> prices.  Only in this way will the enormous growth potential of the
> United States technology industry be protected."
>
> About Sun Microsystems, Inc.
>
> Since its inception in 1982, a singular vision -- "The Network Is The
> Computer(TM)" -- has propelled Sun Microsystems, Inc.  (Nasdaq:  SUNW),
> to its position as a leading provider of industrial-strength hardware,
> software and services that power the Internet and allow companies
> worldwide to ".com" their businesses.  With $13 billion in annual
> revenues, Sun can be found in more than 170 countries and on the World
> Wide Web at http://sun.com.
>
> Sun, Sun Microsystems, the Sun logo and The Network Is The Computer are
> trademarks or registered trademarks of Sun Microsystems, Inc.  in the
> United States and other countries.

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