Microsoft's actions attract legal attention... again

Microsoft is co-operating with a US government investigation into its $135m investment in ailing software house Corel.

By Joey Gardiner, 14 February 2001 18:00

NEWS It has admitted it was issued with a court order from the Department of Justice (DoJ) requesting it to hand over all documents relevant to the deal, revealed last October. Microsoft spokesman Jim Cullinan said Microsoft is complying fully with the subpoena, but doesn't think there are any real legal concerns. silicon.com predicted at the time that the deal would raise regulatory eyebrows, as Corel is one of just a few companies to compete with Microsoft in the desktop applications arena. A report in the Wall Street Journal yesterday said the investigation was prompted by Corel's announcement last month that it was looking to spin off its Linux Operating System business. Linux is seen by many as a major threat to Microsoft's Windows operating systems. Microsoft's ongoing antitrust case against the DoJ is due to restart at the end of this month, with Microsoft appealing Judge Jackson's decision to force the company to split. Many observers have predicted the DoJ will be more lenient to Microsoft under the presidency of George W Bush, who is known to favour a light touch.

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