Judge rules against Microsoft

The judge ruled that Microsoft sought, and used, monopoly power to stifle competition, including bundling its Internet Explorer browser with its operating system. Jackson wrote in his decision that “Microsoft maintained its monopoly power by anti-competitive means and attempted to monopolize the Web browser market.”

This decision was not unexpected by either the government or Microsoft. Mediation talks between the feds and Microsoft were suspended this weekend when the mediator found that the two sides were to far apart. The court moved forward today and released its decision.

Microsoft was hammered by traders today as a result, dropping about 15% on the day. It’s has resumed trading on after-hours market trading systems. Firms such as Corel Corp. that rely on the Microsoft rival LINUX operating system are trading up in after-hours action.

The breakdown of talks and the impending ruling not only slammed Microsoft, but it sparked Nasdaq to its biggest single-day point decline, closing down 349 points to 4,223. The 8% drop was about the fifth-biggest percentage drop ever.

Jackson is expected to hear more testimony over possible penalties.