IBM, Microsoft Settle Antitrust Suit

According to an article by Grant Gross and published at the IT World Web site, Microsoft and IBM on Friday announced a settlement to the antitrust claims filed by IBM after the U.S. government took action against Microsoft in the mid-1990s. Microsoft will pay US$775 million to IBM and extend a $75 million credit for use of its software at the company.

The settlement covers charges of discriminatory pricing and overcharging as well as claims related to IBMis OS/2 operating system and SmartSuite software. According to Mr. Gross, it doesnit cover IBMis claims that its server hardware and software businesses were also harmed. However, the settlement keeps IBM from making claims related to those businesses for two years and prevents it from seeking damages for server claims made before June 30, 2002.