H
Herb Fritatta
http://finance.myway.com/jsp/nw/nwdt_ge.jsp?news_id=cmt-240w7093&feed=cmt&date=20040827
SAN FRANCISCO, Aug 27, 2004 (AP Online via COMTEX) -- Several
California cities and counties, including San Francisco and Los Angeles,
sued Microsoft Corp. on Friday, accusing the software giant of illegally
charging inflated prices for its products because of monopoly control of
the personal computer operating system market.
The local governments are asking a judge to make the case a class action
on behalf of all California cities and counties. If a judge approves the
lawsuit as a class action and Microsoft is found liable, the Redmond,
Wash.-based company could be liable for many millions of dollars,
perhaps billions.
"It's anticompetitive, it's predatory, and it denies consumers, and in
this case taxpayers, the benefits of innovation that a free marketplace
should provide," said San Francisco City Attorney Dennis Herrera.
"Taxpayers no less than consumers have been victimized by Microsoft's
misconduct, and we are seeking a just resolution with our lawsuit today."
Microsoft spokeswoman Stacy Drake said the company's lawyers hadn't
fully reviewed the lawsuit, but she defended the company's prices.
"We value our relationships with these cities and have been grateful for
the opportunity to provide them with great software at reasonable
prices," Drake said. "We firmly believe that we have provided very
competitive prices and great solutions to our customers. In fact, we've
built our business on delivering innovative software at low prices, and
have been the market leader in reducing prices while increasing the
value contained in software."
The lawsuit filed in San Francisco Superior Court is the latest in a
string of similar actions brought against Microsoft across the country.
Last month, a San Francisco Superior Court judge granted final approval
to a $1.1 billion settlement between Microsoft and California consumers
who accused the company of violating state antitrust and unfair
competition laws - nearly the same accusation made in the lawsuit filed
Friday.
What's more, similar class-action lawsuits were filed in at least 16
other states on behalf of consumers. The company has agreed to settle 12
of those cases, including a $104 million settlement in Arizona and a $34
million settlement in Massachusetts.
They're separate from the antitrust case that Microsoft settled in 2002
with the Justice Department and several states.
The municipalities want compensation for all Microsoft Windows operating
systems and such products as Microsoft Word and Excel they bought as far
back as Feb. 18, 1995.
By PAUL ELIAS AP Business Writer
Copyright 2004 Associated Press, All rights reserved
SAN FRANCISCO, Aug 27, 2004 (AP Online via COMTEX) -- Several
California cities and counties, including San Francisco and Los Angeles,
sued Microsoft Corp. on Friday, accusing the software giant of illegally
charging inflated prices for its products because of monopoly control of
the personal computer operating system market.
The local governments are asking a judge to make the case a class action
on behalf of all California cities and counties. If a judge approves the
lawsuit as a class action and Microsoft is found liable, the Redmond,
Wash.-based company could be liable for many millions of dollars,
perhaps billions.
"It's anticompetitive, it's predatory, and it denies consumers, and in
this case taxpayers, the benefits of innovation that a free marketplace
should provide," said San Francisco City Attorney Dennis Herrera.
"Taxpayers no less than consumers have been victimized by Microsoft's
misconduct, and we are seeking a just resolution with our lawsuit today."
Microsoft spokeswoman Stacy Drake said the company's lawyers hadn't
fully reviewed the lawsuit, but she defended the company's prices.
"We value our relationships with these cities and have been grateful for
the opportunity to provide them with great software at reasonable
prices," Drake said. "We firmly believe that we have provided very
competitive prices and great solutions to our customers. In fact, we've
built our business on delivering innovative software at low prices, and
have been the market leader in reducing prices while increasing the
value contained in software."
The lawsuit filed in San Francisco Superior Court is the latest in a
string of similar actions brought against Microsoft across the country.
Last month, a San Francisco Superior Court judge granted final approval
to a $1.1 billion settlement between Microsoft and California consumers
who accused the company of violating state antitrust and unfair
competition laws - nearly the same accusation made in the lawsuit filed
Friday.
What's more, similar class-action lawsuits were filed in at least 16
other states on behalf of consumers. The company has agreed to settle 12
of those cases, including a $104 million settlement in Arizona and a $34
million settlement in Massachusetts.
They're separate from the antitrust case that Microsoft settled in 2002
with the Justice Department and several states.
The municipalities want compensation for all Microsoft Windows operating
systems and such products as Microsoft Word and Excel they bought as far
back as Feb. 18, 1995.
By PAUL ELIAS AP Business Writer
Copyright 2004 Associated Press, All rights reserved