End in sight to Microsoft antitrust lawsuit

(story to be published in tomorrow’s issue, March 27)

Talks to settle the Microsoft antitrust lawsuit appear to be reaching an end as Judge Thomas Jackson prepares to deliver his legal rulings in the landmark case as early as tomorrow. Settlement proposals passed between both sides on Friday, as the pace in the four-month-old negotiations was stepped up. However, people close to the negotiations warned it was too early to tell if a settlement could be reached, and said both sides were trying to manage expectations in case the talks failed. Microsoft indicated there was substantial work to complete inside the talks. “We are working very hard towards a settlement and it is certainly an uphill effort,” a spokesman said. Rumours of a deal have swirled around the talks since they began in December, raising market hopes of a swift resolution and prompting sharp rises in Microsoft shares. The meetings have been shrouded in secrecy – under strict orders from the mediator, Judge Richard Posner – and few details have emerged about their substance. Microsoft said yesterday: “We have been rigorous in not commenting on the mediation and we are not going to comment on the mediation.” A Justice Department spokeswoman said the published reports about the settlement talks “should not be taken seriously” and insisted again that antitrust officials had refused to comment on the talks. While Microsoft executives have said on several occasions that they hope to reach an agreed settlement of the case, it seems unlikely that any resolution will occur until the 11th hour. Legal experts have dismissed the possibility that Microsoft may have entered – at any time – into discussions about a potential breakup of the company, since any such voluntary action on the part of the company would be likely to lead to shareholder law- suits. As a result, the talks have concentrated from the outset on so-called conduct remedies, which would aim to curb Microsoft’s business practices. Reuters