Changing Landscapes: AOL-Time Warner Merger: Microsoft: Everything's O.K. Now, Right? Wrong

Judge Jackson, your honor, Microsoft would like to enter into the record the exhibit marked "AOL Time Warner."

Though Microsoft's lawyers haven't had a chance to make that statement yet, company spokesmen did ballyhoo the AOL-Time Warner deal as proof that the high-tech industries in which Microsoft competes--unfairly, according to the Justice Department--are evolving so quickly and convulsively that to assert Microsoft exerts monopolistic power is "almost comical."

Yet sources close to the government reported that Justice is still not amused. Throughout last week, the feds continued to favor the most draconian of penalties for Microsoft: a breakup of the software...

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