Microsoft Antitrust Case Heading Back to Court
BRIAN NELSON, CNN ANCHOR: The Microsoft antitrust case is heading back to court. The judge mediating the settlement of the antitrust case has called it quits, saying the gap between the government and the software giant is just too great. For more on this story, we go to New York and CNN Financial News reporter, Steve Young. Hi, Steve.</s>STEVE YOUNG, CNN CORRESPONDENT: Hi, Brian. At trial, Microsoft's internal e-mail proved to be the company's undoing. And ironically, by e mail, at 5:09 p.m. Eastern today, federal Judge Richard Posner, in Chicago -- the mediator -- sent word to all the parties that the settlement talks, after four months, had broken down. Why? The judge said in a statement that was a part of the e-mail that the talks had become fruitless because the division was too deep- seated to be bridged. There were a number of reports about what was going on in those negotiations, including two reports that Bill Gates had met personally with the judge and that he had phoned the judge. Judge Posner seemed to express a happiness with possibly Microsoft, as only the judge could have been the source of those reports. Judge Posner, said "Despite my strenuous efforts, there's been a good deal of leaking and spinning, and this leaking and spinning has given rise to news reports that have created a misleading impression." The chairman of Microsoft, Bill Gates, was obviously very involved in the settlement talks, and within the hour issued a statement from Redmond, Washington, the company's campus.</s>BILL GATES, MICROSOFT CHAIRMAN: I personally invested hundreds of hours in a very direct way. I'm personally quite disappointed that a fair and reasonable settlement wasn't the result of our effort.</s>YOUNG: Mr. Gates also indicated that of course now Microsoft is going to have to head a different route.</s>GATES: We would have preferred to reach a fair and reasonable settle with the government. I'm personally quite disappointed that this wasn't possible. Now we'll have to win the case through the legal system.</s>YOUNG: Judge Posner in the e-mail praised both sides, but he pointedly did not mention the 19 states. The attorney general of Connecticut, Richard Blumenthal, said that the parties had tried to work together to find common ground, but added -- quote -- "We are now ready to return to the court with the same determination as ever." Sources close to Microsoft suggested late today that the Justice Department and Microsoft were negotiating in good faith, but the states just couldn't agree, but a source close to the Justice Department has told me that that was not the case. As for where we go from here, it is possibly that as soon as Monday, Thomas Penfield Jackson, the other federal judge in Washington, will issue his conclusions of law, or certainly sometime next week. It is widely expected to be very adverse to Microsoft. This news is going to be filtering out over the weekend. It's likely to have a strong impact on Microsoft's stock and perhaps the rest of the technology market, which has been very hard hit this last week. Brian, back to you:.</s>NELSON: All right, thank you, CNN's Steve Young in New York. Search CNN.com CNNSI.com CNNmoney.com The Web