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American Morning

Microsoft's Request for Delay Denied in Antitrust Case

Aired August 17, 2001 - 11:10   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: Well, now to another story that was breaking this morning, maybe some rainy days for Microsoft. Let's check in now with our Tim O'Brien who is in Washington. He's got the latest on this ruling in federal court that is going to have a big effect on the company.

TIM O'BRIEN, CNN FINANCIAL NEWS CORRESPONDENT: Hey, Leon.

This is a complicated case, as you know, but what happened today really isn't all that complicated. You'll recall last June a federal appeals court found Microsoft guilty of antitrust violations. It ordered the case back to a lower court to determine what the remedy should be. Microsoft is appealing that decision right now to the U.S. Supreme Court, and it had asked the appeals court for a stay to put its previous decision on hold until the U.S. Supreme Court can determine whether it wants to get into this fray. Well today, the appeals court declined to do that. This is not really a ruling on the merits at all. It merely allows the case to go back to the lower court while the Supreme Court decides whether to get involved.

Now to get a stay from an appeals court ruling, Microsoft had to show that, one, it had a reasonable chance of winning in the Supreme Court and two, that it would suffer irreparable harm if the stay were not granted. The court of appeals today did not address that first point, but it did say on the second point - quote - "Microsoft has failed to demonstrate any substantial harm that it would - that would result from reactivation of the proceedings in the district court." Microsoft can now ask the U.S. Supreme Court itself to grant a stay. If no such stay is forthcoming, then a new district court judge will start considering remedies while the Supreme Court considers whether to get involved in this case.

HARRIS: All right. That brings up even more questions then, Tim. Really quickly now, any idea how soon that might get through the Supreme Court process? And what is the net affect here on consumers?

O'BRIEN: No immediate effect on consumers as a result of what happened today, but everybody is watching the clock, the timetable. The Justice Department has until September 6 to respond to Microsoft's bid for Supreme Court review. And we could hear at the very earliest from the Supreme Court the last week of September.

HARRIS: All right, good deal. Thanks much, Tim O'Brien, appreciate you following this 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