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California Consumers Settle MS Antitrust Suit

Posted by timothy on from the but-the-customers-shrug-and-move-on dept.

lseltzer writes "According to AP, $1.1B in Microsoft products will go to California consumers to settle antitrust claims against the company. I bet the lawyers don't get paid in software." Actually, the article says that those who apply for some of the settlement will receive "vouchers redeemable for any manufacturer's computer-related products and software."

8 of 274 comments (clear)

  1. actually by Anonymous Coward · · Score: 5, Informative

    "proceeds of the settlement will be distributed to members of the class in the form of vouchers redeemable for ANY manufacturer's computer-related products and software."

    notice the word 'any'

  2. MS Press Release by Anonymous Coward · · Score: 3, Informative
    Just in case anyone wants to read Microsoft's spin on this, here's their press release.
    Settlement to Benefit Consumers and California Schools

    SAN FRANCISCO, Calif., and REDMOND, Wash. -- Jan. 10, 2003 -- The San Francisco law firm of Townsend and Townsend and Crew LLP, lead counsel for two certified classes of California consumers, and Microsoft Corp. jointly announced today that a $1.1 billion settlement has been reached in a series of coordinated class action lawsuits alleging that Microsoft violated California's antitrust and unfair competition laws. Trial was scheduled to commence in San Francisco before California Superior Court Judge Paul H. Alvarado on Feb. 24, 2003.

    The settlement, which is subject to court approval before becoming final, benefits consumers and businesses who purchased Microsoft® operating system, productivity suite, spreadsheet or word processing software between Feb. 18, 1995, and Dec. 15, 2001, for use in the state of California. The settlement proceeds will be distributed to class members in the form of vouchers that may be used to buy any manufacturer's desktop, laptop and tablet computers, any software used with those computer products and specified peripheral devices for use with computers. Two-thirds of any unclaimed settlement proceeds will be donated to California's most needy public schools in the form of Microsoft educational and productivity software as well as vouchers for the purchase of computer equipment, professional development services and non-Microsoft software. Details of the settlement are outlined in a term sheet that has been signed by the parties. A final Settlement Agreement will be filed in the San Francisco Superior Court later this month.

    "This is one of the largest settlements ever reached under the antitrust or unfair competition laws of California," said plaintiffs' lead counsel Eugene Crew. Co-lead counsel Richard Grossman elaborated: "This settlement represents a significant portion of the amount that Californians paid to Microsoft for its operating system and key applications software over a seven-year period. It is a tremendous result for California's businesses and consumers, and will also benefit our schools at a time when that help is desperately needed."

    "This is a good resolution for all sides, and we're especially pleased by the opportunity to help thousands of schools all across California get the computers and software they need," said Microsoft General Counsel Brad Smith. "This settlement allows us to focus on the future and building great software, and avoids the cost and uncertainty of a lengthy trial."

    "Coming at a time when California is in the middle of a significant budget crisis, these funds and software will help to ensure that California's schoolchildren get technology they can use," said Jack O'Connell, State Superintendent of Public Instruction. "This settlement is an innovative way to help our most needy schools shrink the 'digital divide' and will help deliver on my department's commitment to getting technology infrastructure into our schools to enhance the learning process."

  3. Re:cool by Anonymous Coward · · Score: 3, Informative

    I realize that you were just kidding, but you can (should?) actually buy Free Software from the GNU foundation (see here). You might want to consider doing that with your vouchers.

  4. Re:give the vouchers to the state by zAmb0ni · · Score: 3, Informative
    Consumers should be allowed to settle their increased tax bill by handing over their settlement voucher to the California government, in exchange for a guarantee that the voucher would be used to purchase computer technology equipment and other educational resources for state schools. Perhaps also the California government should be awarded any unclaimed consumer vouchers after a certain (short) settlement period.

    First off...there is a better, more in depth News.com story available which clears some things up.

    Second...two thirds of the unclaimed money will go directly to California schools (1/2 in cash, 1/2 in MS software and cash grants).

    Your though sounds kind of interesting, but wouldn't it really boil down to a voluntary California tax via Microsoft? Of course, California residents never had to wait for a Microsoft settlement to be nice to the school system, they always could have donated cash, or their tax return monies to the Cali school system. I really doubt that many if any has ever done that. Yea it sounds like a novel thing for consumers to do, but I have a sneaking feeling the people who will actually try to cash in on the settlement will be companies and small businesses who may have bough tens to hundreds of Microsoft products during the suit time period. Most consumers will either 1) not be bothered to file a claim to get their $5-30 bux back, 2) never file a claim because they have no idea about the settlement.

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    -zAmboni
    Team Ars Technica Lamb Chop

  5. Re:Software cost by Spy+Hunter · · Score: 5, Informative
    You have to look for a report on this by a California newspaper. It will have much more detail about the exact terms, since CA residents are the ones who are getting the vouchers. From the San Jose Mercury News:

    Under the terms announced today, Microsoft will issue vouchers, ranging in value from $5 to $29 per licensed product, to consumers and businesses. The vouchers can be used to buy computers and software from any maker, including Microsoft rivals.

    For claims totaling $100 or less, no documentation of purchases is needed, they said.

    Plaintiffs' lawyers estimate consumers will recoup about one-third of what they spent for Microsoft products, including the Windows operating systems and popular Office and Word programs, between Feb. 18, 1995, and Dec. 15, 2001.

    For example, consumers will receive a voucher for $29 for each copy of Microsoft Office purchased, $26 for each copy of Excel, $16 for each copy of the Windows operating system and $5 for each copy of the word-processing program Word, according to plaintiffs' lawyers.

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    main(c,r){for(r=32;r;) printf(++c>31?c=!r--,"\n":c<r?" ":~c&r?" `":" #");}
  6. Replying to myself... by Spy+Hunter · · Score: 5, Informative
    Oops, almost forgot:
    Two-thirds of any unclaimed settlements, up to $1.1 billion, will be given to California's neediest public schools to be used for computer equipment and related services in a program to be administered by the state's Department of Education. Microsoft would keep the final one-third of the unclaimed portion.

    And a link to the article

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    main(c,r){for(r=32;r;) printf(++c>31?c=!r--,"\n":c<r?" ":~c&r?" `":" #");}
  7. R-E-A-D The Story, OK? by reallocate · · Score: 3, Informative

    MS is not giving California up to $1.1 billion in MS software, it is giving California residents up to $1.1 billion in coupons that can be redeemed against any software/hardware manufactuer's products.

    Reaction to this little piece says something about the attention span of the average /. reader.

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    -- Slashdot: When Public Access TV Says "No"
  8. peanuts -- evil peanuts by g4dget · · Score: 4, Informative
    I recommend reading the news.com article. Major points:

    • It's for Windows 95 and Windows 98.
    • It seems to be focused on business licensees.
    • It's unclear whether the vouchers are really unrestricted; the formulation "Microsoft or other products" sounds like marketing speak for "selected products by Microsoft and a few other companies".
    • It appears that for anything that isn't redeemed, Microsoft gets to keep 1/3, give 1/3 in cash, and give 1/3 in Microsoft software to schools.

    The kicker is, however, $1bn is about as much as Toshiba had to pay for shipping supposedly defective floppy disk drives on their laptops.

    I think this is absolutely evil. Even if Microsoft had to pay everything in cash, it would be peanuts. Instead, they'll be able to further contaminate schools with their proprietary software, something they have already volunteered to do as a "donation"--a tax sheltered marketing ploy.