The US Justice Department's decision not to pursue the breakup of Microsoft was met with relief on Thursday at the software giant, along with hope that the antitrust case would be settled soon.
"It would be a good thing to get this whole thing behind us, as a company and the nation as a whole," said retiree David Himmel, 61, a Microsoft shareholder who was strolling through the sprawling grounds of the corporate campus.
"It's been a long process," he said. "But who knows? This may be a lead toward a settlement."
In June, a federal appeals court upheld a ruling that Microsoft had operated as an illegal monopoly. But the court reversed an order breaking up the company and sent the case back to a different judge to decide a new penalty.
In Thursday's announcement, the Justice Department said it wanted to settle the case as quickly as possible.
Officially, Microsoft reacted with cautious optimism, saying it remains "committed to resolving the remaining issues in the case."
A Microsoft software architect said employees were trying not to let the news distract them. "It's a long-haul thing," said Dick Dievendorff, 55. "We're really just working on our products. The legal team is working on the legal stuff."
In Seattle, Mayor Paul Schell applauded the decision.
"This is an important decision not only for Microsoft but for our community," said Schell's press secretary Roger Nyhus. "Microsoft is a bellwether, and this decision will help preserve the innovation of one of our region's most important employers. We would all like to see a swift end to this case."
Analysts said they weren't surprised the business-friendly administration of President George W. Bush decided to abandon the breakup.
"I don't think anybody really thought that the breakup was likely to happen, so why continue to pursue it?" said Steve Kleynhans, vice president of META Group.
Common Cause, a public policy watchdog group, added: "It's hardly a surprise that the Bush/Ashcroft Justice Department has flip-flopped and is no longer seeking an effective remedy against Microsoft.
Microsoft put their bets on this horse and now it is time to collect their winnings." John Ashcroft is US Attorney General.
The Justice Department said it will continue to seek penalties that could affect or delay Microsoft's new Windows XP operating system, scheduled to hit shelves in October.
Some analysts said they think that's unlikely.
"I think Microsoft has enough stall tactics to delay the case long enough to get Windows XP out to consumers," said Aaron Scott of Tucker Anthony Capital Markets.
Stephen Scott, a Los Angeles entrepreneur in Redmond on business, said he thinks the Justice Department had a good case, but that the litigation was dragging down the technology sector.
Scott offered a blunt assessment of the government's decision: "Wimps. They folded."
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