Jun 27, 2001 : Microsoft Breakup Verdict Overturned

📅 June 27, 2001 - A U.S. appeals court ruled Thursday that an order to split software giant Microsoft in two be reviewed because of potential partiality on the part of the ruling judge.
The seven-judge appeals panel agreed unanimously that U.S. District Judge Thomas Penfield Jackson conducted himself in a way which might indicate he was biased against Microsoft.
"Although we find no evidence of actual bias, we hold that the actions of the trial judge seriously tainted the proceedings before the District Court and called into question the integrity of the judicial process," the judgment said.
"We... remand the case to the District Court for reassignment to a different trial judge for further proceedings consistent with this opinion."
Jackson had previously ruled the company had acted as an illegal monopoly by bundling its Windows operating system with its Internet Explorer Web browser. As punishment, Jackson had ordered the company split in to separate, distinct units.
While the appeals panel agreed with the ruling, it disagreed with the punishment. A lower court will now review Jackson's decision to split the company up.
Microsoft was extremely pleased with the announcement. "Today's ruling drastically narrows the case and removes the breakup cloud from the company,'' Microsoft spokesman Jim Cullinan told Reuters. "We will continue to work to resolve the remaining issues without the need for continued litigation, which benefits no-one."
Investors met the news with glee, driving shares in the company up $1.60, or 2.25%, to finish the day at $72.74.