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Microsoft to settle antitrust class action for $10.5 million


An antitrust action against Microsoft looks like it will settle with the company paying direct purchasers of Windows around $10.5 million, although the terms of the deal need court approval before they become effective.

The action was brought by individuals and businesses who said the company used its monopoly power to overcharge them for direct purchases of the Windows operating system software. Microsoft will pay each purchaser a portion of the price paid for the software – without admitting liability.

Microsoft has settled a number of antitrust cases this year, most recently with former operating system rival Be Inc., which it agreed to pay $23.25 million. Some actions are still outstanding, however.

Sun Microsystems is continuing litigation over what it claims is Microsoft's abuse of monopoly power in connection with Sun's Java Virtual Machine, while in Europe an EC investigation into monopoly abuses by the software giant is nearing its end.

The Commission has issued a statement of objections and is waiting for Microsoft to respond. The most recent reports suggest that a hearing has been arranged in November for Microsoft to present its case.

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