Microsoft pays $10 million to settle suit

Spinner

Microsoft said on Tuesday of this week, that is would pay $10.5 million, to settle an antitrust lawsuit brought against it, by customers who claimed the software giant used its monopoly power to overcharge them for direct software purchases. The software giant however, has admitted no wrong doing, but says it is willing to pay each purchaser a portion of the price paid for the software bought.

Under the settlement, U.S. consumers and businesses who bought Microsoft's software directly from the company's Web site or through direct marketing campaigns agreed to drop their charges.

Microsoft, which admitted no wrongdoing, said it will pay each purchaser a portion of the price paid for software bought up until April 30, 2003.

Microsoft and the plaintiff's lawyers estimated that the total value of the payout would amount to $10.5 million.

The settlement, which is pending in the U.S. District Court in Maryland, must be approved by U.S. District Judge J. Frederick Motz.

"Microsoft is pleased to have reached a mutually satisfactory settlement with these plaintiffs, and believes that resolution of this case is another step in our effort to resolve these issues so we can focus on the future," Tom Burt, Microsoft's deputy general counsel for litigation, said in a statement.

The settlement, if approved, would represent progress for Microsoft as it works to resolve remaining antitrust cases. These are based on claims that the No. 1 software company used its monopoly on PC operating systems to push prices higher or to harm rivals.

Earlier this month, Microsoft settled an antitrust suit by Be /news:link>, agreeing to pay the failed software developer $23 million to drop its suit accusing Microsoft of destroying its business through anti-competitive practices.

Redmond, Washington-based Microsoft also reached a $750 million settlement and strategic partnership with AOL Time Warner in May. A lawsuit brought by Sun Microsystems remains pending.

Since U.S. courts draw a distinction in antitrust cases between consumers who buy directly and those who buy through resellers or retailers, the judge narrowed the number of plaintiffs eligible for class-action status.

Courts have held that direct purchasers have standing to recover losses in federal antitrust cases, but indirect purchasers do not. In response, some states have passed laws that give indirect purchasers the right to sue for antitrust damages.

In January, Microsoft settled a number of class-action lawsuits filed in California for $1.1 billion. That settlement returned money to consumers in the form of vouchers to buy computers and computer-related items.

Source - CNET