Microsoft, US govt reach settlement

Mumbai: US-based software giant Microsoft has survived the threat of getting split into two companies. Being tried on allegations of creating a monopolistic kind of a situation, the company has been fighting an anti-trust case against the US justice department for more than three-and-a-half years.

It reached a settlement with the government last week, under which other computer manufacturers will get the freedom to feature other software products besides Microsofts Windows in their computers. Under the pact, Microsoft will be also required to share the inner workings of its Windows computer operating systems with other software manufacturers.

The pact will also prevent Microsoft from punishing anyone who makes or uses competing products. The judgment, vastly different from former US president Bill Clintons remedy of splitting the company into two, will be required to be endorsed by a federal judge and the 18 states fighting the case to become binding on the two warring parties.

Reacting to the judgment, US attorney general John Ashcroft said: It will put an end to Microsofts unlawful conduct and bring effective relief to the marketplace and ensure that consumers will have more choices in meeting their needs of computing and working with their computers.

Reacting positively to the development, Microsofts shares moved up on 2 November. Bill Gates appeared to be a satisfied man when he said in a statement: The settlement is fair and reasonable and most important is in the best interests of the consumers and the economy. Most observers see the case as having been settled in favour of Microsoft, as the company will no longer be required to split itself into two.