Historical Newspapers of South Carolina

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Friday, January 14,2000 W\t (DamCCOCR Page A3 Lawyers suggest Microsoft breakup by Ted Bridis Associated Press WASHINGTON — Government lawyers in the Microsoft antitrust case want to break the software giant into three parts, aiguing that lesser sanctions would be in adequate, people close to the discussions confirmed Wednesday. If U.S. District Judge Thomas Pen field Jackson were to agree to such a dra matic solution, a mandated breakup of Bill Gates’ Seattle-based empire would carry enormous implications for the way consumers buy and use software for their computers. Justice Department lawyers laid out their proposal favoring to break Microsoft into three parts during a secret meeting last week in Washington with represen tatives of 19 states, people close to the case said. The states are also suing the company over alleged antitrust violations. Those close to the discussions spoke on condition of anonymity, con cerned they might anger U.S. Circuit Judge Richard Posner, the federal medi ator in Chicago holding ongoing settle ment talks. But they indicated little progress has been made so far in those discussions, as the sides remain far apart on important issues. The government’s endorsement of a breakup — considered the “death penal ty” among possible remedies — could encourage Microsoft to seek a lesser sanc tion during settlement talks. But it could also stymie negotiations and encourage Microsoft to battle the case through Amer ica’s courts for years. The Justice Department, which last month disclosed that it had hired as its adviser a financial consulting firm, Green hill & Co. LLC of New York, believes that lesser sanctions — such as pro hibiting the company from abusing its in fluence or publishing its wholesale prices — would be inadequate to rein in Mi crosoft. The Justice Department declined to publicly discuss its plans. It wasn’t immediately clear exactly how the government envisions the re structuring of one of America’s most suc cessful companies, with $19.7 billion in sales last year alone. But one source said lawyers do not envision dividing Microsoft into one company to sell its dominant Windows operating system, another to sell its software applications and a third to sell its Internet content, as has been suggested by some. Another breakup option that had been under consideration was dividing Mi crosoft into smaller duplicate companies, dubbed “Baby Bills” after the company’s famous billionaire chairman, that would be set against each other to compete. The 19 state attorneys general, who hired their own advisers separately from Justice, are deciding whether to endorse Justice’s breakup proposal but are lean ing in favor of it, sources said. At least one state has cautioned that a breakup could be unduly disruptive to consumers, who rely on Windows as a de facto standard to run their software applica tions and their PCs. Critics warn that competing versions of Windows could lead to software that doesn’t run on some versions or some computers. Breaking up Microsoft into smaller companies would be “stupid, because it just creates confusion in the marketplace,” said Michael Cusumano, a professor at the Massachusetts Institute of Technol ogy who has written aboutMicrosoft’s battle with the fomjnr Netscape Com munications Coip. “The breakup sounds likeamesstome.” The government expects to formal ly present the breakup plan next week when it meets privately again in Chica go with Posner, the mediator. - Jackson, the trial judge, uiged gov ernment lawyers bluntly during a private meeting in November to agree among themselves on sanctions before they bring any formal recommendation for him to consider. Microsoft spokesman Jim Cullinan said Wfednesday that “the notion of break ing up Microsoft is an extreme and rad ical proposal not justified by what has Microsoft seepagem Hillary Clinton appears on Letteiman BY DEEPTI HA.iELA Associated Press New York—Alter weeks of needling Hillary Rodham Clinton for being a car petbagger who was scared to appear on his show, David Letterman stifled the sarcasm when the first lady finally appeared. “We have to give this woman a tremendous amount of credit for just showing up,” Letterman told his “Late Show” audience just before interview ing Mrs. Clinton on Wednesday. Mrs. Clinton even proved to hold her own in the zinger department when the TV host asked about the first lady’s new home in suburban Chappaqua. “Every idiot in the universe js go ~ ing to chive by honking now,” Letter man said. “Whs that you?” Mrs. Clinton asked Letterman has made a running gag of Mrs. Clinton, calling her an outsider from Arkansas seeking political op portunity in a Senate bid from New York. Mrs. Clinton admitted to being “just a little” nervous, but told Letterman: “I knew if I was going to run for Senate, I was going to have to come and sit in tliis chair and talk to the big guy.” Letterman started by lobbing her a softball, asking her to “tell us a little bit about yourself.” Mrs. Clinton smiled and told Let terman she grew up in the Midwest — as he did—has a mother named Dorothy —as he does—and just couldn’t resist the temptation to follow him to New York. During the interview, Mrs. ...Clinton aced Letterman’s New York quiz, correctly identifying the state bird —bluebird—and the state tree—the sugar maple. Her likely opponent in the Senate race. New York City Mayor Rudy Giu liani, has been on the show 14 times, chatting up Letterman about the Yan kees, Mrs. Clinton and life in New York. He even got some laughs in a few com edy skits. Letterman asked Mrs. Clinton what she thought of the mayor and if he had the temperament to be a senator. “He’s done a'lot of stuff as mayor, but I tliink being senator is a different kind of job. A senator can’t go arrest a homeless person,” she said, referring to the mayor’s recent crackdown on the" homeless who refuse police orders to move. A special list of Mrs. Clinton’s Top 10 reasons for finally appearing on the show included “I lost a bet with Tip per” and “If Dan Quayle did it, how hard could it be?” Reno begs both sides to resolve Elian's fate by Michael J. Snjffen Associated Press Washington—Attorney General Janet Reno Thursday implored all involved in the face-off over custody of Elian Gon zalez to resolve the situation quickly so the 6-year-old Cuban boy “can get on with his life.” Speaking to reporters at her weekly news conference, Reno repeatedly de clined to say precisely what should be the next step in the protracted fight over where Elian should live. She added: “The issue at stake here for the federal gov ernment is immigration law and federal law should control this situation. “The issue is a father who wants his son home and grandparents who want their grandson home and these are bonds that should be honored,” said Reno, who on Wednesday brushed outside a state court ruling delaying the boy’s return and said any challenge to the Immigration and Naturalization Service decision to return Elian to Cuba would have to be carried out in federal court. Spencer Eig, an attorney for the boy’s Florida relatives, said Wednesday that Elian’s Miami relatives will ask a feder al court for relief. “The U.S. government continues to deny Elian his legal and constitution al rights,” Eig said. “The government should have respected the temporary pro tective order of the Florida family court, as it was based on preventing imminent and irreparable harm to the child. Now Euan SEE PAGE M News Briefs ■ Britain ends ban on gays in the military LONDON (AP) — Obeying a European court ruling, Britain has lifted its ban on gays in the military and replaced it with a code of conduct on sexual behavior, whether soldiers be heterosexual or ho mosexual. “As no primary or secondary legis lation is required, with effect from today, homosexuality will no longer be a bar to service in Britain’s armed forces,” De fense Secretary Geoff Hoon of the gov erning Labor Party told the House of Commons on Wednesday. He said the ban was no longer “legal ly sustainable” after the European Court of Human Rights ruled in September in favor on four gay enlistees dismissed from the military. The judges labeled the ban a grave interference in private lives. But Hoon warned that homosexuals in the armed forces will still face disci plinary action if their behaviour under- - mines the effectiveness of their units. ■ Vatican considers recognizing King as martyr Boston (AP)—The Rev. Martin Luther King Jr., the Baptist who led the civil rights movement, is a candidate to be rec ognized by the Vatican as a martyr for the Christian faith. • The U.S. Catholic bishops included King among Americans to be considered by the Vatican for a list of 20th century martyrs whom Pope John Paul II will > honor in a May 7 ceremony, The Boston Globe reported Thursday. ■ Cleveland water main bursts Cleveland (AP) —An old water main burst in the downtown area of Cleveland, spewing 25 million gallons onto streets, closing schools and forcing many to boil their drinking water. The 36-inch pipe burst Wednesday on a road that runs between two of the city’s best-known landmarks, the Rock and Roll Hall of Fame and Jacobs Field. We’re ja t tbook e pie o by the §|gi Interne s so ha I . -BBBmIMmmmBHBm We realize we don't have to waste your time explaining the virtues of the Internet. Let's just say that at VarsityBooks.com we've made the most of it. 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