Microsoft wants to end antitrust issues

July 4, 2005

Microsoft and IBM have entered into a $850 million agreement to resolve long-standing antitrust issues between the two companies.

Microsoft will pay IBM $775 million and extend $75 million in credit towards deployment of Microsoft software at IBM (Armonk, N.Y.), the companies said.

The companies said the settlement resolves claims arising from the U.S. v. Microsoft antitrust case in the mid-1990s. A U.S. District Judge in that case found that IBM's business had been impacted by certain Microsoft practices.

The settlement addresses all discriminatory pricing and overcharge claims based on the findings in the U.S. antitrust case and resolves all antitrust claims, with the exception of claims for harm to IBM's server hardware and server software businesses, according to the companies.

IBM also agreed, subject to certain limitations, that it will not assert claims for server monetary damages for two years and will not seek to recover damages on such claims incurred prior to June 30, 2002.

Microsoft said it also dropped antitrust claims against IBM. "With these antitrust issues behind us, both Microsoft and IBM can move ahead, at times cooperatively and at times competitively, to bring the best products and services to customers," said Brad Smith, general counsel and senior vice president, Microsoft, in a statement.

"Over the last few years we have been focused on resolving our disputes with other companies, and today's announcement takes another significant step towards achieving that goal."

Source: eeTimes