All at once, the Justice Department was not only going to have to defend the government's contention that Microsoft illegally stifled competition, but it now has to provide good reasons why the company should be broken up, which is the remedy that appears to be the government's goal. As a result of Microsoft's sudden decision to end the settlement talks, Judge Jackson decided last Monday to issue his findings in the case. To no one's surprise, the judge found that Microsoft had indeed violated the law, and that the company was continuing to do so in a number of ways. As a result of the findings, Microsoft stock and that of many other tech bellwethers dropped so dramatically that the old guard companies, including General Electric, were once again those with the largest market capitalizations. Despite the finding that Microsoft was guilty of antitrust violations, and despite other similar findings elsewhere, Microsoft hardly seemed worried.
Any significant remedy is years in the future.
In fact, Microsoft's abrupt end to the negotiations was one of the better moves the company has made in the months that this case has dragged its way through the legal system. The most obvious relief for Microsoft is that the appeals process is expected to take at least two years. During that time it's business as usual. In fact, this gives Microsoft plenty of time to make sure that any breakup will happen in a way the company finds favorable. Meanwhile, Microsoft can always plead guilty to something else and sign a consent agreement.