The judge in the US DOJ Vs Microsoft case, Justice Thomas Penfield Jackson has issued a 207 page ruling on the case. It states that Microsoft exercised a monopoly over the personal computer operating system market. This is a major setback for Microsoft and it seems to back the US Department of Justice's case.

The main facts were that: Microsoft had an extremely large share of the market; Microsoft had a dominant position that was protected by the high barrier to entry to that market; Users lack any commercially viable alternative to Windows. Microsoft had achieved a monopoly which in itself was not a crime however it seemed to seek to perpetuate that monopoly by abusing that power.

The ruling also took issue with Microsoft's predatory pricing. In Microsoft's internal documents, it stated that it could have charged $49 for the Windows 98 upgrade and still remained profitable however Microsoft charged $89 in an attempt to maximise the revenue.

The US DOJ were happy with the ruling and no doubt all the Linux users will be overjoyed by this ruling. Already some of the States Attorneys who joined the action have been calling for stiff penalties and sanctions against Microsoft. However Bill Gates seems to be hinting that Microsoft is willing to cut some sort of deal with the government.

This ruling is not a verdict and this is not the end of the case. The two sides will now have to issue their "conslusions of law" as to how the antitrust legislation applies. Then Justice Penfield Jackson will issue his "ruling of law" on the case.