Sadly, they didn’t lose. They almost lost, appealed and ended up with a settlement which didn’t require removing IE from Windows or prevent tying other software to windows.

On November 2, 2001, the DOJ reached an agreement with Microsoft to settle the case. The proposed settlement required Microsoft to share its application programming interfaces with third-party companies and appoint a panel of three people who would have full access to Microsoft’s systems, records, and source code for five years in order to ensure compliance.[29] However, the DOJ did not require Microsoft to change any of its code nor did it prevent Microsoft from tying other software with Windows in the future.

https://en.wikipedia.org/wiki/United_States_v._Microsoft_Corp