Massachusetts v. Microsoft Corp.

373 F.3d 1199, 362 U.S. App. D.C. 152, 2004 WL 1462298
CourtCourt of Appeals for the D.C. Circuit
DecidedJune 30, 2004
Docket02-7155 and 03-5030
StatusPublished
Cited by128 cases

This text of 373 F.3d 1199 (Massachusetts v. Microsoft Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Massachusetts v. Microsoft Corp., 373 F.3d 1199, 362 U.S. App. D.C. 152, 2004 WL 1462298 (D.C. Cir. 2004).

Opinion

Opinion for the Court filed by Chief Judge GINSBURG.

GINSBURG, Chief Judge:

I. Background.1204

II. Commonwealth of Massachusetts v. Microsoft, No. 02-7155.1207

A. Remedial Proposals.1207

1. Commingling . 1207

2. Java deception.1213
3. Forward-looking provisions.1215

a. Disclosure of APIs.1216

b. Disclosure of communications protocols.1222

4. Web Services.1225
5. Market Development Programs.1226
6. Open Source Internet Explorer .1227
7. Java must-carry.1231

B. Cross-cutting Objections.1232

1. “Fruits”.1232
2. Presumption.1233

III. CCIA and SHA v. United States & Microsoft, No. 03-5030 .1234

A. Intervention.1234
B. The Public Interest Finding.1236
1. Issues overlapping Massachusetts’ case.1237

a. Commingling.1238

b. Java.1239

c. Disclosure of APIs.1240

d. Adequacy of definitions.1241

e. “Fruits”.1242

2. Non-overlapping issues.1243

a. Enforcement.1243

b. User interface .•.1245

c. Anti-retaliation.1245

C. Procedural Claims .1246
1. Government’s disclosure.1247
2. Microsoft’s disclosure.1249
IV. Conclusion.1250

In United States v. Microsoft Corp., 253 F.3d 34 (D.C.Cir.2001) (Microsoft III), we affirmed in part and reversed in part the judgment of the district court holding Microsoft had violated §§ 1 and 2 of the Sherman Antitrust Act, vacated the associated remedial order, and directed the district court, on the basis of further proceedings, to devise a remedy “tailored to fit the wrong creating the occasion” therefor, id. at 107, 118-19. On remand, the United States and certain of the plaintiff states entered into a settlement agreement with Microsoft. Pursuant to the Antitrust Procedures and Penalties (Tunney) Act, 15 U-S.C. §§ 16(b)-(h), the district court held the parties’ proposed consent decree, as amended to allow the court to act sua sponte to enforce the decree, was in “the *1204 public interest.” Meanwhile, the Commonwealth of Massachusetts and several other plaintiff states refused to settle with Microsoft and instead litigated to judgment a separate remedial decree. The judgment entered by the district court in their case closely parallels the consent decree negotiated by the United States.

Massachusetts alone appeals the district court’s entry of that decree. It argues the district court abused its discretion in adopting several provisions Microsoft proposed while rejecting several others Massachusetts and the other litigating states proposed. Massachusetts also challenges a number of the district court’s findings of fact. Based upon the record before us in Microsoft III and the record of the remedial proceedings following remand, we affirm the district court’s remedial decree in its entirety.

The Computer and Communications Industry Association (CCIA) and the Software and Information Industry Association (SIIA) separately appeal the district court’s denial of their motion, following the district court’s approval of the consent decree between the United States and Microsoft, to intervene in the case for the purpose of appealing the district court’s public-interest determination. They argue the factors the district court was to consider in determining whether to allow them to intervene weighed in their favor. We agree and reverse the district court’s denial of their motion to intervene for the purpose of appealing that court’s public-interest determination.

CCIA and SIIA make various arguments ■— some overlapping those raised by Massachusetts — that the consent decree between the United States and Microsoft is not in the public interest. They also argue the parties did not satisfy the procedural requirements of the Tunney Act. For these reasons, they seek vacatur of the district court’s order approving the consent decree and a remand for entry of “a proper remedy.” We find no merit in any of CCIA’s and SIIA’s objections, substantive or procedural. We therefore uphold the district court’s approval of the consent decree as being in the public interest.

I. Background

The facts underlying the present appeals have been recounted several times. See New York v. Microsoft Corp., 224 F.Supp.2d 76 (D.D.C.2002) (States’ Remedy); United States v. Microsoft Corp., 231 F.Supp.2d 144 (D.D.C.2002) (U.S. Consent Decree); see also Microsoft III. We therefore limit our discussion of the facts and of the proceedings to a brief review of events prior to our remand in 2001 and a more detailed account of what has transpired since then.

In May 1998 the United States filed a complaint against Microsoft alleging violations of federal antitrust laws. At the same time, a number of states and the District of Columbia filed a complaint against Microsoft alleging violations of both federal and state antitrust laws. The two complaints, which the district court consolidated, sought various forms of relief, including an injunction against certain of Microsoft’s business practices.

After a lengthy bench trial the district court entered findings of fact, United States v. Microsoft Corp., 84 F.Supp.2d 9 (D.D.C.1999) (Findings of Fact), and held Microsoft had violated §§ 1 and 2 of the Sherman Act by illegally maintaining its monopoly in the market for “Intel-compatible PC operating systems,” by attempting to monopolize the browser market, and by tying its Windows operating system to its Internet Explorer (IE) browser. United States v. Microsoft Corp., 87 F.Supp.2d 30 (D.D.C.2000) (Conclusions of Law). The *1205 district court also held Microsoft violated the antitrust laws of the several states. Id. at 56. Based upon its findings of fact and conclusions of law, the district court decreed that Microsoft would be split into two separate companies, one selling operating systems and one selling program applications. See United States v. Microsoft Corp., 97 F.Supp.2d 59 (D.D.C.2000) (Remedy I).

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Bluebook (online)
373 F.3d 1199, 362 U.S. App. D.C. 152, 2004 WL 1462298, Counsel Stack Legal Research, https://law.counselstack.com/opinion/massachusetts-v-microsoft-corp-cadc-2004.