Microsoft strikes Arizona antitrust deal for $104.6 million

The action was brought by individuals and businesses from Arizona, who said the company used its monopoly power to overcharge them for direct purchases of the Windows operating system software between January 1996 and December 2002.

On Monday, an Arizona Superior Court gave preliminary approval to the settlement agreement, which provides that Microsoft will pay each purchaser a portion of the price paid for the software.

The maximum amount payable under the agreement – $104.6 million – makes this the second largest settlement agreed by Microsoft in a class action, after the $1.1 billion settlement the company reached with California consumers last year.

As in earlier settlements, the payments will be made in the form of vouchers for the purchase of hardware or software from any manufacturer. Fifty percent of the value of any unclaimed or unredeemed vouchers will be given to schools in Arizona, to assist in purchasing computers or software.

According to Brad Smith, senior lawyer with Microsoft, "The novel approach we've taken in structuring this settlement has not only allowed us to resolve this legal matter, but provide needed benefits to students at the same time."