Despite facing difficulties since July of the previous year, when Judge Thomas Jackson mandated the separation of Microsoft into two entities, the company's situation has significantly improved since the start of this year.
The election of George Bush, who opposes a break-up, has improved Microsoft's situation. However, on February 26th, the appeal court hearing greatly favored Microsoft. Firstly, the court allotted time to discuss Judge Jackson's findings. Secondly, they sought to assess Judge Jackson's remarks to the press to ensure a fair trial was conducted.
...Lastly, they examined Judge Jackson's proposal of dividing Microsoft and determined if it was the most favorable solution.
Following a two-day hearing, the appeal court has overturned several of Judge Jackson's findings and has rejected the proposal to divide the company. Consequently, it appears that Microsoft will not be forced to undergo a breakup. There are even indications that Microsoft may prevail in the lawsuit. While this is certainly positive for Microsoft, it should be emphasized that their future hinges on market forces rather than legal proceedings.
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