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Microsoft and Justice Dept. to settle 
Friday, November 02 2001
by Matthew Clark


The marathon battle between Microsoft and the US Department of Justice seems to
have come to an end following an agreement between the two opponents. 

The proposed settlement, which was described as "fair and reasonable" by
Microsoft's Bill Gates, will place a fairly broad range of restrictions on the
software giant. One restriction will see Microsoft submit to a panel of
independent monitors: the panel will oversee Microsoft's conduct and gain access
to detailed information about the company, its books and its source code.
Microsoft has agreed to this measure, among others, for a period of five years,
but the term could be extended another two years if the company fails to meet the
terms of the deal. 



The deal, which was presented to US District Judge Colleen Kollar-Kotelly who is
presiding over the case, will require Microsoft to provide rival software
developers with information that is expected to allow them to develop competing
products. Competitors' products must be able to run on Microsoft's flagship
software product Windows including its newest version Windows XP, the Justice
Department said. 



The settlement "imposes a broad range of restrictions that will stop
Microsoft's unlawful conduct, prevent recurrence of similar conduct in the future
and restore competition in the software market, achieving prompt, effective and
certain relief for consumers and businesses," the DOJ said in a statement. 



According to the agreement, Microsoft will also allow a panel of three
independent experts to work on its premises on a full-time basis to ensure that
the company's products comply with the terms of the legal agreement. 



"This settlement will promote innovation, give consumers more choices, and
provide the computer industry as a whole with more certainty in the marketplace,"
said Charles A. James, assistant attorney general for the antitrust division. He
said the government had set out to obtain relief that would stop Microsoft from
engaging in "unlawful conduct" and would prevent any recurrence of that
conduct in the future. "We have achieved those goals," James said. 



However, even if Judge Kollar-Kotelly approves the deal, Microsoft will not be
cleared of other ongoing anti-trust legal proceedings. The 18 US States that have
joined the Justice Department in its campaign against Microsoft have not yet
signed on to the deal and it is expected that they will ask for more time to
study the agreement before making a decision. Europe's antitrust investigation
into Microsoft is also ongoing. 



Other aspects of the proposed agreement will require Microsoft to provide
software developers with interfaces for its browser, e-mail programs, media
players and other Windows applications. The agreement will also ensure that
non-Microsoft server software can interoperate with Windows on a PC the same way
that Microsoft servers do. The DOJ said this is important because it ensures that
Microsoft cannot use its PC operating system monopoly to restrict competition
among servers. 





Furthermore Microsoft will no longer be able to require manufacturers to
exclusively support Microsoft software and must license its operating system to
key computer makers for five years, if the deal is approved. The Justice
Department said Microsoft would also be prohibited from retaliating against
companies that support competing products. 



"The settlement is fair and reasonable and, most important, is in the best
interests of consumers and the economy," said Microsoft chairman and chief
software architect Bill Gates. "While this settlement imposes some very tough
rules and restrictions on our business, we believe that resolving this case now
is the right thing to do." 





For more information visit the US Department of Justice at HREF="http://www.usdoj.gov">http://www.usdoj.gov or Microsoft at HREF="http://www.microsoft.com">http://www.microsoft.com.