Microsoft declined appeal from court

The Supreme Court said Tuesday it will not grant Microsoft Corp. another chance to avoid punishment for antitrust violations associated with its widely used Windows computer software.

The court, without comment, declined to accept an appeal from the computer giant that would have forestalled yet-unspecified penalties. The case is now in the hands of a lower court judge.

The court"s action does not indicate how the justices view the merits of the Microsoft case, and the court could yet referee part of the long-running court battle. It does represent a setback for Microsoft, and a victory for the Justice Department and 18 states pursuing claims that Microsoft abused its monopoly power to curb competition and harm consumers.

The Supreme Court appeal was a question mark hanging over court-ordered settlement talks. Last month, U.S. District Judge Colleen Kollar-Kotelly ordered round-the-clock talks to try to settle the case. She said she will appoint a mediator on Friday if necessary. Kollar-Kotelly cited the economic fallout from terror attacks as one reason for haste. "There"s no reason this case can"t be settled," she said.

Microsoft spokesman Jim Desler said the company is disappointed by the high court"s action. "We"ll continue to move forward with the case on the district court level, and we"ll comply with the court order to work with the government to settle this case," he said.

The Justice Department released a brief statement: "We"re pleased with the court"s decision. We"ll continue our progress in the District Court."

News source: CBS MarketWatch

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