According to the Supreme Court, a monopolist is any firm that "can profitably raise prices substantially above the competitive level." The Appellate Court noted that this condition is rarely obvious, so courts must examine circumstantial evidence. A monopoly is not, by itself, illegal, and possessing monopolistic power doesn't mean the company owns a particular market percentage. The term "monopoly" is widely misunderstood. The Appellate Court upheld these findings and said that Microsoft is liable for the lower court's monopolization findings.
Jackson also ruled that Microsoft illegally suppressed Netscape's threat to Windows. Judge Jackson decided that Microsoft passed the test for being a monopoly and ruled that the company's Windows product possesses a monopoly in the Intel-compatible PC OS market. In many ways, the Appellate Court actually affirmed the most important parts of the DOJ's case against the software giant. However, the Appellate Court didn't give Microsoft a broad mandate to continue business as usual. The most important reversal was the decision not to break up the company Microsoft is cheering this reversal as total victory. In short, the Appellate Court affirmed and reversed parts of Jackson's ruling. Jackson and the Appellate Court have a long history of mutual dislike, particularly where Microsoft is concerned, and clearly, the Appellate Court had an axe to grind in this regard. The most controversial issue in the appeals phase has been Jackson's conduct-neither Microsoft nor the DOJ had asked that the Court address this matter. The Appellate Court reviewed a wide range of topics related to the Microsoft antitrust case, including the charges and evidence presented during the original trial, Judge Thomas Penfield Jackson's findings of fact, Jackson's recommended remedy, and Jackson's behavior during and after the trial. In fact, I think Microsoft still has a lot to worry about.
After examining the Appellate Court's opinion, I don't agree.
Although both sides-Microsoft and the US Department of Justice (DOJ)-have taken the decision as a win, most news outlets have declared the decision a major Microsoft victory. The Court reversed the initial ruling to break up Microsoft and sent the case back to the District Court for new hearings about a remedy. Unless you were far from a TV or newspaper late last week, you probably heard that the US Court of Appeals had finally weighed in on the Microsoft antitrust case.
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