Microsoft, Calif. municipalities to settle

May 3, 2006
Copies of Microsoft\'s Windows XP operating system

A tentative $70 million settlement was announced Tuesday to resolve antitrust claims brought on by Californian local government entities against Microsoft.

The class-action suit filed in August 2004 alleged that Microsoft "engaged in anticompetitive conduct and used its market power to overcharge members of the government class."

Though settling, Microsoft has denied the state's allegations.

The suit was filed on behalf of Townsend and Townsend and Crew, counsel for the City and County of San Francisco, the city of Los Angeles, and counties of Santa Clara, San Mateo, Los Angeles and Contra Costa.

"This antitrust settlement will provide state and local governments with a fabulous opportunity to obtain their choice of a wide variety of computer products sold by any competitor in the market," Richard L. Grossman, attorney for the government plaintiffs, said in a statement.

If agreed upon by both parties and approved by the court, the $70 million settlement will be divided among state and local government so as to obtain cash refunds upon the purchase of any brand of qualifying computer hardware and software.

"We value our relationship with these cities and counties and are pleased to reach a settlement that allows us all to focus on the future," stated Tom Burt, corporate vice president and deputy general counsel for Microsoft.

So far, the plaintiffs have approved the basic terms of the settlement in the case, which is pending before the Honorable J. Frederick Motz in the U.S. District Court in Maryland, but are still in negotiation of a final settlement agreement with Microsoft.

Copyright 2006 by United Press International

Explore further: Google unfazed by 3 US government inquiries

Related Stories

Google unfazed by 3 US government inquiries

June 11, 2009

(AP) -- Google Inc. doesn't believe it needs to change its ways despite three separate U.S. government inquiries into whether some of the Internet search leader's actions are thwarting competition.

US DOJ requests more time for Microsoft oversight

April 16, 2009

(AP) -- The Justice Department asked a federal judge Thursday to extend its watch over some of Microsoft Corp.'s business practices for a second time, saying it needs an extra year and a half to make sure Microsoft's antitrust ...

HP reaches settlement with DOJ in kickbacks case

August 3, 2010

(AP) -- Hewlett-Packard Co. said Monday that it has agreed in principle to settle a lawsuit by the Department of Justice, which alleged that HP and other technology companies paid kickbacks to Accenture PLC in exchange for ...

Will antitrust probe keep Microsoft, Yahoo apart?

August 23, 2009

(AP) -- Yahoo Inc. and Microsoft Corp. hope that by joining forces, they can tilt the balance of power in Internet search away from Google Inc. First, however, Yahoo and Microsoft have to convince regulators that their plan ...

Microsoft skewers Google in EU antitrust complaint

March 31, 2011

(AP) -- Microsoft Corp. escalated its attack on Google Inc. by complaining to European regulators Thursday that its fiercest rival is an Internet bully that abuses its dominance of online search and advertising.

Recommended for you

The ethics of robot love

November 25, 2015

There was to have been a conference in Malaysia last week called Love and Sex with Robots but it was cancelled. Malaysian police branded it "illegal" and "ridiculous". "There is nothing scientific about sex with robots," ...


Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.