Microsoft and IBM Resolve Antitrust Issues

Microsoft and IBM Resolve Antitrust Issues

Microsoft Corp. and IBM today announced that they have entered into an agreement to resolve antitrust issues between the two companies.

Today’s settlement resolves claims arising from the United States v. Microsoft antitrust case in the mid-1990s, where IBM was identified in U.S. District Judge Thomas Penfield Jackson’s findings of fact as having been impacted in its business by certain Microsoft practices. Under the agreement, Microsoft will pay IBM $775 million and extend $75 million in credit towards deployment of Microsoft software at IBM.

In addition to addressing all discriminatory pricing and overcharge claims based on the findings in the U.S. antitrust case, the settlement resolves all antitrust claims, including claims related to the IBM OS/2 operating system and SmartSuite products, with the exception of claims for harm to IBM’s server hardware and server software businesses. IBM has further agreed, subject to certain limitations, that it will not assert claims for server monetary
damages for two years and will not seek to recover damages on such claims incurred prior to June 30, 2002. Microsoft also releases antitrust claims.

Read the complete Press Release