Judge refuses to throw out Microsoft anti-trust case

A US federal judge has refused to throw out Microsoft's anti-trust case with nine US states.

The company argued the states did not have authority to demand penalties to apply to the entire nation.

But District Judge Colleen Kollar-Kotelly rejected this after canvassing the Justice Department's opinion.

Federal lawyers maintained their opposition to the states' specific claims, but agreed they should be able to sue.

The states want the court to compel Microsoft to produce a simplified version of Windows that readily incorporates third party features.

Microsoft has two other important motions still pending before the judge.

One asks for dismissal on the grounds of a lack of evidence.

The other motion would centre on the requirement to pare down its operating system.

The states and Microsoft are due to deliver their closing arguments on June 19.

A ruling is expected late in the summer.