Attorneys general from 20 states narrowed their antitrust lawsuit against Microsoft on Friday, dropping charges related to the software company's domination of business software with its Office application suite.
The plaintiffs instead will concentrate on the portion of the case that alleges that Microsoft is unfairly using its near-monopoly of operating systems to stifle competition.
"This allows the states to devote their full resources to preparing for trial on Microsoft's conduct relating to Web browsers and operating systems," New York Attorney General Dennis Vacco said in a statement.
"By no means are we dropping it because it's not viable," said Mollie Conkey, spokeswoman for Vacco.
On 18 May, both the US Department of Justice and the states filed antitrust lawsuits against Microsoft. US District Court Judge Thomas Penfield Jackson combined the cases.
The states' complaint originally contained allegations that Microsoft used anti-competitive tactics to license its Office package of business software to computer makers, driving other business software publishers out of the market.
Antitrust law experts said Friday's move will probably strengthen the government's case, letting them focus on the strongest parts of their argument. The door is still open for the government to pursue the Office angle later, they said.
"What's important in my mind is, are [the states] going to pursue broader remedies across other markets after the trial this fall?" said Gary Reback, an outspoken Microsoft opponent and an antitrust lawyer at Wilson, Sonsini, Goodrich & Rosati.
Conkey said the states are still investigating the Office-related issues. They likely will serve subpoenas to Microsoft (MSFT) next week, she said.
Microsoft officials didn't immediately return phone calls seeking comment.
The trial for this case will be held on 8 September.
Financial analysts said the development is not likely to affect Microsoft's stock.
"I don't think it's a big story," said Christopher Galvin, financial analyst at Hambrecht & Quist.
