Slashdot Mirror


Microsoft Settles Minnesota Antitrust Suit

An anonymous reader writes "According to the Star Tribune: 'The Microsoft antitrust suit in Minnesota was settled out-of-court Monday seven weeks after it began, but before the plaintiffs even finished putting on their case before the jury. Terms of the settlement won't be disclosed until they are finalized and presented to a Hennepin County judge for preliminary approval 'in early summer,' Microsoft said in a statement. The antitrust suit in Hennepin Country District Court sought as much as half a billion dollars from Microsoft for alleged overcharges of more than 1 million Minnesota consumers and businesses who bought Microsoft Windows, Word or Excel software between 1994 and 2001.'"

23 of 176 comments (clear)

  1. What is Minnesota doing... by nberardi · · Score: 3, Insightful

    What is Minnesota running out of money just like the EU? So they try to hit up the cash cow, I think we will see more and more of these suits comming out, and all that it is going to do is make it so generic that they will get thrown out on the spot.

    1. Re:What is Minnesota doing... by nberardi · · Score: 5, Insightful

      It is usually cheaper to settle out of court than put this in the public domain. Look at what happened to OJ for instance, he was found guilty, but everybody thinks he is guilty except in the eyes of the law. Microsoft doesn't care what the law thinks of them, they care what their customers think of them, and that is why it is always cheaper to settle, and not set a president.

    2. Re:What is Minnesota doing... by ePhil_One · · Score: 2, Insightful
      However, it must have gotten someone at Microsoft scared, else they wouldn't have settled it.

      I'm not sure. They may have just as well want Minnesota to sign a document with terms that they never would have agreed to under normal circumstances. MN gets a cash payout, but inadvertently indemifies MS against all future action, lest they have to pay back the money. We all know MS can be sneaky about the fine print.

      --
      You are in a maze of twisted little posts, all alike.
    3. Re:What is Minnesota doing... by Anonymous Coward · · Score: 3, Insightful

      If they really cared about what people thought, they could have settled this whole anti-trust thing back before it started and avoided 5 years of news coverage. Probably would have been a lot cheaper as well.

    4. Re:What is Minnesota doing... by strictnein · · Score: 4, Insightful

      Won a big settlement, most of which went into the pockets of Mike Cerici

      He and his buds only got about $250 million. (chump change) The state got $7 - $8 billion.

      What I loved about the results of that case was that when the public found out how much money ($250 million) that one little lawyers firm got a lot of people were pretty upset. But our friendly attorney general said that amount was "fair" (I'll give you one guess as to what political party he's affiliated with). I wonder how jealous the state's lawyers were when they saw the millions of dollars that Mr Cerici and his buds got in comparison to their public (albeit still good) wages.

    5. Re:What is Minnesota doing... by Lord+Kano · · Score: 3, Insightful

      So they try to hit up the cash cow, I think we will see more and more of these suits comming out, and all that it is going to do is make it so generic that they will get thrown out on the spot.

      The suits against the tobacco and gun industries have opened the floodgates. Whenever a state needs revenue it'll sue the biggest unpopular company it can find.

      Personally I don't believe that a monetary solution is what an entity would go after if they REALLY wanted to stop Microsofts practices. They'd seek to punish them by forcing them to open their code.

      THAT would alter Microsoft's behavior overnight.

      LK

      --
      "Hi. This is my friend, Jack Shit, and you don't know him." - Lord Kano
  2. Is this the new MS strategy? by koa · · Score: 4, Insightful

    Just throw money at every piece of litigation they are in? Are they trying to artificially boost their public perception by being in as little lawsuits as possible?

    --
    ....move along....nothing to see here....
    1. Re:Is this the new MS strategy? by prell · · Score: 2, Insightful

      I think the chief motive for MS to settle these lawsuits is that, written into the settlements is that, in exchange for money, Microsoft acknowledges no cupability or guilt as stated in the indictment/whatever. I think that's a standard clause of these settlements. Someone will have to correct me if I'm wrong.

      Has Microsoft not settled one of these? I imagine if they didn't settle, and therefore accepted blame (if that's indeed the case), it would set a precedent that could really cost MS some money in the long run.

      IANALBIWLO (I am not a lawyer, but I watch Law & Order).

  3. Yeah, whatever... by shrykk · · Score: 5, Insightful

    Microsoft are like that car company (Ford???) who decided it was cheaper to compensate burn sufferers and the bereaved than fix the gaping flaw that made their fuel tanks tend to catch fire.

    Microsoft can pay fines out of their petty cash, while perpetrating similar tricks over and over.

    --
    #define struct union /* Reduce memory usage */
  4. Settled for what? by Gothmolly · · Score: 4, Insightful

    "Free" copies of WindowsXP? "Free" copies of MS-Word? a $4 coupon off your next purchase of $600 software? MS is just extending their monopoly, probably dangling a carrot in front of the schools, after all, who can fault them if its 'for the kids' ?

    --
    I want to delete my account but Slashdot doesn't allow it.
  5. I wonder.. by mikeophile · · Score: 3, Insightful
    Will the one million overcharged customers be seeing any of this settlement? Or is this just a penalty being assessed by the state?

    If so, I can see why M$ would settle.

    A win against them in court by the state would make it a lot easier for a class-action suit to also win, setting even further precedent in other states.

  6. Get ready for the Linux FUD.. by -tji · · Score: 2, Insightful

    Microsoft is going full throttle to settle all outstanding lawsuits. It wouldn't do to have a bunch of outstanding legal battles while you're throwing mud at Linux and questioning the legal security of the businesses that are using it.

    Regardless of how the SCO thing works out, you can be sure that MSFT will be using this FUD when trying to close deals with big business customers.

  7. Re:Why the gubamint? by nberardi · · Score: 5, Insightful

    For the same reason states got cigeratte money instead of the public for smoking and putting up with second hand smoke. Then they turned around and used that money for everything but the intended purpose. Which I really think what MN is hoping to do here.

  8. Minnesota simply looked at the chances... by Marnhinn · · Score: 3, Insightful

    Also a fellow Minnesotan (and proud to be one), I can see why they chose to settle the suit. It may not have helped the little guy, but given Microsoft more or less got off from the Federal Government, chances of this suit succeeding are very slim. Also - MS has been paying out CASH for quite a few of it's settlements - from the article "Microsoft previously paid $1.55 billion to settle similar suits in nine other states and the District of Columbia."

    Hopefully this will result in that type of settlement and not the "free educational software" [which is ironic as the suit is because Microsoft was a monopoly - letting them put their software in schools only increases the monopoly].

    --
    There is always a frontier where there is an open and willing mind
    1. Re:Minnesota simply looked at the chances... by jasondlee · · Score: 2, Insightful

      That doesn't say it was paid in cash. I think the OP has a very good point...

      jason

      --
      jason
      Have a good day?! Impossible! I'm at work!
  9. Is M$SFT Guilty? by TheJavaGuy · · Score: 4, Insightful
    Here is a qoute from the article:

    Microsoft attorneys said the company had done nothing wrong...

    Then why settle even before the plaintiffs even finished putting on their case before the jury?

    Could it be the case was compelling?

    --
    Opera Watch - An Opera browser blog.
    1. Re:Is M$SFT Guilty? by Goobermunch · · Score: 2, Insightful

      Actually, it's more likely that Minnesota's AG realized that they weren't going to be able to convince a jury of every element they needed to hit in order to obtain a favorable verdict.

      The situation goes like this:

      MN isn't sure they'll win, but MSFT isn't sure that it will be able to overcome local prejudice. What do you do? Give it to an unpredictable jury? Or make a decision everyone can live with?

      --AC

    2. Re:Is M$SFT Guilty? by donutello · · Score: 5, Insightful

      Let me play the devils advocate here.

      Could it be because the legal system in the country is so screwed up that it is simpler for a company to just settle every lawsuit it faces, regardless of merit, than it is to fight the lawsuit and win? Of course you could just as easily argue that fighting the case would have cost MN more than it would get if it won compared to what it got in the settlement.

      There are two sides to every coin. One thing I think we can all agree to is that there is something seriously wrong with a legal system when the cost of prosecuting or defending a case is a significant factor in the direction a case goes.

      --
      Mmmm.. Donuts
  10. Wow. by hot_Karls_bad_cavern · · Score: 3, Insightful

    Yep, i agree. Will someone please address this issue? i know we live in a time when a law suit is both a legit way to "right a wrong" and a way to intimidate, hush, or exact financial ruin upon someone.

    How long will MS keep paying what looks to be hush money to make problems go away before someone notices that they are not chaging?

    That is, of course, only one issue...i'm worried about what nberardi is worried about: at what point will legit suits against MS get tossed out because it looks/smells like another "let's hit MS's deep pockets" suit?

  11. Re:Settled, eh? by Goobermunch · · Score: 5, Insightful

    Actually, most settlement agreements have a disclaimer of liability (not guilt, this wasn't a criminal trial). If this had gone to the jury and an actual verdict been issued, then the court may have had the ability to set up a situation where further improper conduct on MSFT's part would have resulted in contemp citations.

    Yet another reason why MSFT benefits from settling.

    --AC

  12. "It doesn't matter" -- B. Gates by kclittle · · Score: 3, Insightful
    "You don't get it. It doesn't matter".

    Supposedly this was Gates rejoinder to Steve Jobs when the latter said, "We're better than you." Gates knows in this case that throwing a bit of cash to Minnesota to settle the suit doesn't really matter, either. It's the same Machiavellian insight as to what it takes to win his grand strategic goals at the cost of a few tactical losses. "Oh, I over charged you for the years between 1994 and 2001? So sorry. Here's a 30% refund in 2004. Thanks for the 70% I get to keep! (And the time I needed to eliminate my competition, hehe...)".

    --
    Generally, bash is superior to python in those environments where python is not installed.
  13. Re:As I live in MN... by Gaijin42 · · Score: 4, Insightful

    The microsoft to Ma Bell analogy holds little water.

    Bell was a large company, broken into several smaller companies, each allowing to provide service to a given area. No restrictions were made on what type of product each baby bell was allowed to produce, or the prices each baby bell could set (other than the pricing regulations already in effect)

    The other large anti-trust case, (Standard Oil) was the same. Location of service were split into multiple companies, not type of service.

    Microsoft is a producer of goods, not a distributor of goods. The things that they do distribute (Software downloads, services) aren't really location based. As Slashdot is well aware, the internet has no boundries.

    There are 0/None/Nada precidents for splitting up a company based on product, or telling a company what products they can create.

    While MS did (and may continue to, depending on who you ask) act uncompetitavley, this power would not be removed by any logical splitup.

    If you split them into OS vs Office for example, the major source of anti-compete accusations in the past was bundling of features within the OS, or forced contracts on OEMs. Neither of these would be fixed by this (proposed) split.

    As stated, geographical splits don't really make sense for a virtual company. You could split up distribution, but MS doesnt really do their own distribution except for downloads. Everything is already passed out to OEMs or chains like Best Buy.

    The only thing you could do would be to make the internal departments act like Black Boxes to eachother. The office team doesn't get any inside info on the OS that isnt available to other developers.

    Even with that, MS is still a defacto monopoly. Very few buisiness apps or games run on non-MS hardware (Discounting mainframe and huge unix apps like SAP that MS isn't even competing with)

    In office they have a defacto standard, because everyone wants their files to be readable by as many people as possible. The new XML file formats will significantly lower the barrier for entry into that market tho.

    And finally, The fact that Mac and Linux are claiming such good marketing position, is in fact evidince AGAINST MS being given a radical splitup. If you really want MS to get split up, make Apple and Redhat say that they are closing because MS drove them into the ground.

    As long as they are around, all MS will get is "corrective" action.

  14. Re:How is Windows overpriced? by justMichael · · Score: 2, Insightful

    Where can you get a FULL, non-upgrade, non-OEM copy of XP for less than $100?