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  States: Gates Misconstrues Penalties
Time: 17:22 EST/22:22 GMT | News Source: Associated Press | Posted By: Byron Hinson

The nine states suing Microsoft Corp. tried Tuesday to show that company chairman Bill Gates is too extreme in his interpretation of proposed antitrust penalties against his company. Gates said a provision barring retaliation against firms that choose non-Microsoft products is so broad that it would "ban Microsoft from competing in any product category." Gates and Steven Kuney, a lawyer for the states, battled over clauses in the provision, as Kuney tried to box Gates in on an acceptable rewrite. U.S. District Judge Colleen Kollar-Kotelly is free to impose whatever penalty she sees fit to respond to Microsoft's violations of antitrust law.
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