The U.S. Justice Department's top antitrust official called the remedy in Microsoft's U.S. antitrust case "well-crafted" and "successful," and urged U.S. and European Union officials on Friday to be cautious in fighting abusive monopoly behavior.
The remedy--most of which expires in November--has been challenged by California and some other states, which argue that Microsoft continues to abuse its dominant position in the market for computer operating systems.
Thomas Barnett, the Justice Department's assistant attorney general for antitrust, defended the 2002 consent decree mandating 5-year oversight of Microsoft.
"(The) remedy was well-crafted and has been successful," said Barnett in an appearance at an international antitrust conference at Fordham Law School.
The states want portions of the decree to be extended to 2012, arguing that Microsoft has failed to live up to the agreement. Some portions have already been extended to 2009.
Barnett also warned about choosing overly draconian remedies for monopolistic conduct, quoting Hippocrates' admonition to doctors to, above all, do no harm.
"Consider that markets change in ways that could not be predicted. Many formerly big powerful firms are struggling," he said.
Europe's second-highest court affirmed last week a 2004 European Commission ruling that Microsoft abused its overwhelming market position to crush competitors. The court also upheld a 497 million-euro ($708 million) fine.
Barnett criticized the European court's ruling hours after it came down. He issued a news release accusing the European court of "chilling innovation and discouraging competition" with its 248-page decision. European Competition Chief Neelie Kroes shot back by saying it was unacceptable for the U.S. administration to criticize an independent court outside its jurisdiction.
The transatlantic disagreement over the ruling formed a backdrop to this week's conference.
Philip Lowe, the European Commission's director general for competition, playfully rejected a suggestion that it was time for a victory lap, telling the conference that oversight of Microsoft was an "ultramarathon."
Under the settlement with the U.S. Justice Department, Microsoft was required to create a Microsoft Communications Protocol Program.
The program is designed to give other software companies access to protocols that allow servers running non-Microsoft software to operate with the Windows desktop operating system.
The state attorneys general argue that this has not happened. This portion of the agreement is to expire in 2009, and the Redmond, Washington-based Microsoft has said it is premature to extend it further.
Earlier this year, Microsoft agreed to modify its Windows Vista operating system in response to a complaint that its computer search function put Google and other potential rivals at a disadvantage.
