Microsoft launches appeal against break-up

WASHINGTON DC - Microsoft launched its court appeal against break-up yesterday, arguing that fierce competition in the market for personal computer software prevented it from enjoying a monopoly position.

Opening the appeal before the seven judges of the Washington DC appeals court, Richard Urowsky for Microsoft said: "Nothing Microsoft did foreclosed Netscape from any portion of the marketplace." Netscape was one of four companies to complain of unfair and illegal business practices on the part of Microsoft designed to preserve its dominance.

A lower court ruled last June that Microsoft had abused its market dominance by unlawfully excluding potential competitors and ordered it to be broken into two companies.

The judgment was seen as a landmark, but a more business-friendly climate under a Republican White House has raised Microsoft's hopes that it can avoid a break-up. The balance of legal opinion in Washington is that the appeals court will uphold sanctions on Microsoft but stop short of ordering its break-up.

The prosecution had accused Microsoft of refusing to supply its software to computer makers who wanted to install Netscape's browser, Netscape Navigator. Because Microsoft Windows was pre-installed on 95 per cent of new computers, Jeffrey Minear argued for the US Justice Department yesterday, this in effect excluded Netscape.

Microsoft shares closed up 5 per cent at $US59.56.

The hearing concludes today.