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Breaking News

Court Denies Microsoft's Request for Stay

Aired August 17, 2001 - 10:33   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
LEON HARRIS, CNN ANCHOR: The very latest breaking story we have now is on this ruling against Microsoft in the Federal Appeals Court in Washington.

Let's go there now. Our Tim O'Brien is standing by with the latest -- Tim.

TIM O'BRIEN, CNN CORRESPONDENT: Hi, Leon. You may recall a few weeks ago, a court of appeals decided that Microsoft was guilty of antitrust violations and sent that case back to a district court judge to figure out what the remedies should be. Microsoft was appealing that decision to the U.S. Supreme Court, and it had asked the Court of Appeals to put its decision on hold until the Supreme Court can act. Today the Court of Appeals declined to do that. It's not really surprising.

The same seven judges that found Microsoft guilty of violations, antitrust violations, was being asked to allow Microsoft to continue to market its new operating system, XP, which some think might even be a continuation of those antitrust violations.

This is not really a ruling on the merits. It is merely a denial of a stay application, and Microsoft now can take this to the U.S. Supreme Court and ask the Supreme Court to stay the lower court decision until the Supreme Court itself can decide whether it will take up this case. That would not happen before October, any decision on whether to take the case.

It's a temporary defeat, at the very least, for Microsoft.

HARRIS: And, Tim, we know that Microsoft is about to roll out some very big new products coming out this fall. This may throw a big wrinkle in those plans.

O'BRIEN: Well, it's possible. It all depends on what the Supreme Court does. If the Supreme Court grants a stay, well, then, it will have no impact at all on the new XP program. Even if the Supreme Court doesn't grant a stay, there's a real possibility that Microsoft could work out a deal with the Justice Department to allow XP to go forward.

HARRIS: All right, thanks for explaining it all for us. Tim O'Brien, keeping track of it for us in Washington. TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com