Microsoft, DOJ talks reported
By CNET News.com Staff
March 8, 1999, 6:25 p.m. PT
Microsoft and the Justice Department are reportedly exploring possible avenues that
could lead to a settlement of their federal antitrust case before the trial resumes after a
six-week recess.
According to a Seattle Times report, a source close to the case estimated "a 60 percent chance of a settlement."
But the newspaper also said a person close to Microsoft played down that projection because the two sides had
widely differing assessments of the trial.
"It makes sense to explore settlement discussions," the newspaper quoted one source as saying.
Brad Smith, Microsoft general counsel, said he would not comment on whether any
settlement negotiations were under way in the dispute between his company and the
Justice Department (DOJ). He would say only that, "obviously, there were
discussions before the antitrust case was filed a year ago."
The possibility of negotiations was a natural question after today's surprise
announcement of a preliminary agreement in the Federal Trade Commission's antitrust
case against Intel. Microsoft and Intel are de facto partners in the so-called Wintel
juggernaut of Windows software and Intel microprocessors that dominates today's
PC market.
But publicly, at least, Microsoft did its best to contrast the two legal cases. Smith said
Intel's case is more closely related to an earlier Microsoft proceeding, which resulted
in a 1994 settlement over how it handled the licensing of the Windows operating
system to PC makers.
The current case, he said, relates more to product development. The government alleges that Microsoft pushed its
own Internet browser to gain unfair advantage in the market.
"We view our situation as our situation," chief operating officer Robert Herbold said. "We're going to do what's
right for our consumers, and I don't believe you should think it affects our basic thinking."
Reuters contributed to this report.
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