Government antitrust enforcers urged rejection of Microsoft's bid for a new hearing before the federal appeals court that found the company in violation of antitrust laws.
Microsoft wants the court to reconsider one aspect of its June 28 ruling -- its conclusion that the company illegally blended the codes for its Windows operating system and its Internet Explorer browser.
In a court filing Thursday, the Justice Department and 18 states accused Microsoft of rearguing issues already resolved by the 7-0 decision. The government is pressing a related request that the case be sent immediately to a trial judge for a remedy to curb Microsoft's anticompetitive conduct.
"It is time for that process to go forward," the government argued.
The reconsideration request is important because it might determine how the case will affect Microsoft's newest product, Windows XP, which is set for release Oct. 25.
"We maintain that the trial court's ruling on this matter was erroneous and should be corrected on appeal," Microsoft spokesman Vivek Varma said.
Several state attorneys general have signaled they will seek changes to XP, which includes programs for editing digital photos, playing music and making Internet telephone calls. Critics contend Microsoft is seeking to buttress its Windows monopoly by bundling those new programs into the operating system.
The appeals court could rule any day on the two pending motions, having previously told Microsoft not to file any additional papers on the rehearing request.
The court ruled that Microsoft illegally protected the dominance of Windows in violation of the Sherman Act. The panel overturned a breakup order and directed a trial judge to weigh new remedies. The court also disqualified US District Judge Thomas Penfield Jackson from the case because of comments he made to reporters.
Microsoft has said it is considering an appeal to the US Supreme Court. If it takes that step, Microsoft also will seek a delay in the remedy proceedings.
The two sides met on Monday for about 90 minutes to discuss a possible framework for settlement talks. Earlier efforts to resolve the case out of court have failed.
Varma Thursday said Microsoft is "open to resolving any remaining issues in the case as quickly as possible."
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