Has Microsoft Merely Postponed the Inevitable?

Bill Gates' date with destiny has been postponed — for up to ten days. Although compromise talks between Microsoft and the government reportedly foundered in recent days, the federal mediator has asked the ruling judge for an extension so the two sides can continue to reach a deal. If talks break down again, the software company faces the strong possibility they will be found guilty of antitrust violations. And while U.S. District Judge Thomas Penfield Jackson, who will rule on the case if the two sides do not reach an agreement, has not set a firm deadline for a settlement, he is reportedly losing patience with the software giant.

In what is largely perceived to be a last-ditch effort to avoid Judge Jackson's looming decision — which many predict will be harsh — Microsoft proffered a deal last week that would have separated the company's Internet browser from its Windows operating system. The government rejected the offer, saying it did not go far enough in curbing Microsoft's monopoly control over the technology industry. Of course, says Professor Warren Grimes of Southwestern University Law School in Los Angeles, even if Judge Jackson does rule against Microsoft, that will hardly be the end of the story. "Jackson won't retry the case," says Grimes, "but he will hold more hearings to determine what kind of punishment should be levied against the company." And of course, both the government and Microsoft are free to appeal the judge's decision. The software company has particular incentive to do just that, says Grimes, considering its track record: In a recent decision, a U.S. Court of Appeals' ruling was far more favorable toward Microsoft than the original judgment had been.