Microsoft Sidesteps Breakup, Ditches Smart Tags

Hate to say we told you so but, as we mentioned last week, when you're winning and bringing in cash no one is going to call the fouls . In a not so surprising move, a federal appeals court set aside U.S. District Court Judge Penfield Jackson's ruling that Microsoft be dismantled. The appeals court judge not only overturned the dismemberment, but criticized Judge Jackson by saying that he gave the impression of partiality. We thought judges were paid to have opinions. The ruling states "We vacate the Final Judgment on remedies, because the trial judge engaged in impermissible ex parte contacts by holding secret interviews with members of the media and made numerous offensive comments about Microsoft officials in public statements outside of the courtroom, giving rise to an appearance of partiality." What's really scary is that the new court doesn't deny that Microsoft engaged in monopolistic practices. Usually, when you have a monopoly, the U.S. government breaks your company into pieces so that other companies have a fair shake at making a few bucks. Just ask the Bell System, which was broken up in 1984. Hey, maybe they should appeal and request the judge that just let MS off the hook. Nobody (unfortunately) is going to break up Microsoft. We'll be forever subjected to mediocre products as MS squashes superior products by virtue of its boot size. You can Read a transcript of the ruling and other, less opinionated stories about it at PC World , Cnet , Upside , and Wired News . In what now seems like the offering of an olive branch, we've learned from The Inquirer that MS has decided to pull "Smart Tags" out of Windows XP. Smart Tags would allow Microsoft to direct you to one of its own sites or sites that it thinks are appropriate. Well, at least for now they're leaving content providers alone. Oh, by the way, the ruling is also being touted as part of the reason (along with the interest rate cut) the stock market jumped today. Injustice is good for the economy.