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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.'"

22 of 176 comments (clear)

  1. Good thing by Anonymous Coward · · Score: 4, Funny

    Or else Minnesota may have sent Brock Lesnar and Jesse Ventura after them. They could easily beat Gates and Ballmer in a tag match.

  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?

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    ....move along....nothing to see here....
    1. Re:Is this the new MS strategy? by the_mad_poster · · Score: 4, Interesting

      Does that surprise you? If you can throw money at a problem and that costs you less than getting in the fight, that's what you should do, as a company. It's not like they're strapped for cash.

      Besides, the plaintiff is under no obligation to take a settlement offer, so they must have found the terms acceptable based on their complaint.

      --
      Alito: A vote for Alito is a punch in the eye to put that bitch back in her place!
  3. Other Sources by JaxWeb · · Score: 5, Informative

    PC World

    Forbes

    FT.com (A good one!)

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    - Jax
  4. As I live in MN... by teamhasnoi · · Score: 5, Interesting
    I've been following this somewhat. Minnesota was one of the original states in the anti-trust trial that went nowhere. Frankly, I'm expecting the same from this. Coupons, vouchers, and 'free' educational software that will be charged against the judgment at full retail value.

    Score one for the little guy? I doubt it.

    MS should have been broken up like Ma Bell a long time ago.

    1. 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.

  5. 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.

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    #define struct union /* Reduce memory usage */
  6. 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' ?

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    I want to delete my account but Slashdot doesn't allow it.
  7. Why the gubamint? by gr8_phk · · Score: 4, Interesting
    I don't understand. If the people of that state were overcharged, why is the state getting a big pile of money?

    Could be the state got overcharged, but there are enough other cases where it works the way I interpreted this one to ask anyway.

    1. 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. Re:What is Minnesota doing... by macmaniac · · Score: 5, Interesting
    It's a pretty interesting application of anti-trust legislation: seems Minnesota tried to leverage that Microsoft was a monopoly which then put its competitors off, resulting in Minnesotans being overcharged for proprietary software, despite alternatives still existing.

    Seems like a bit of a stretch for a lawsuit to me. However, it must have gotten someone at Microsoft scared, else they wouldn't have settled it.

  9. Re:What is Minnesota doing... by mls · · Score: 5, Informative

    What is Minnesota running out of money just like the EU? So they try to hit up the cash cow...

    Well, MN is running out of money, but that isn't what this is about.

    MN was one of the original states in the anti-trust lawsuit. When the other states settled, we didn't.

    It just took this long to pan out.

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    -mls
  10. 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.

  11. M$ Settlements by blutrot · · Score: 5, Informative
    On the same case:
    ``Wash.-based software giant to reach trial. Microsoft has reached settlements in nine states and Washington, D.C., totaling $1.5 billion, including $1.1 billion in California. Cases were dismissed in 16 other states.'' Minnesota plaintiffs near court date with Microsoft on overcharge claims


    This leaves us with 24 more states that have not come to any decision or have not gone after Microsoft.

    Minnesota's citizens were overcharged between $10 to $70 a year. 9.7 million licenses were overcharged from 1994 to 2001. Silicon Valley
  12. Is M$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 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
  13. Between 1994 and 2001... by Patris_Magnus · · Score: 5, Interesting

    There was other software available. The desktop users may have not wanted to try and learn new/other software or had an IT dept. that was willing to administer multiple party apps., point being that we should learn to live with our decisions instead of suing over them... Something to think about.

  14. The settlement by Anonymous Coward · · Score: 5, Funny

    Microsoft will give Minnesota 700,000 copies of Microsoft Bob.

  15. 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

  16. 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.

  17. Redefinitions by t_allardyce · · Score: 4, Interesting

    Where settlement, read 'Microsoft agrees to give away some of its products (which it will claim are worth a total of severl billion dollars when really its plastic and amounts to potential lost sales) to schools where it hopes to lock in students at an early age (i.e those lost sales are actually an investment at Microsofts advantage).' - for example whats better: give 10,000 copies of office to schools as part of a settlement, or give 10,000 copies of OpenOffice (essentially identical) to schools and Microsoft can give a sum of money to someone else?

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    This comment does not represent the views or opinions of the user.
  18. Still waiting to receive my settle... by wtoconnor · · Score: 4, Interesting

    I don't know about anyone else but I still have not received my CA settlement money. Paper work I sent in almost six months ago has not produced a check. I guess we have to bring up a lawsuit to get then to pay the money they already own us from the previous law suit.