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Home » Hacking News » Microsoft pays IBM $850m

Microsoft pays IBM $850m

by Nikola Strahija on July 2nd, 2005 Microsoft has agreed to pay IBM $775 million and give it another $75 million in software credit under an anti-trust settlement announced yesterday.

The settlement resolves all discriminatory pricing and overcharging claims stemming from the US government's mid-1990s anti-trust case against Microsoft where Judge Jackson found that IBM has been hurt by Microsoft's abusive business practices. The settlement also resolves most other IBM anti-trust claims, including those related to its OS/2 operating system and SmartSuite products. IBM's claims of harm to its server hardware and server software businesses are not covered by the settlement, however.

Both companies said they were pleased by the settlement. They can now "move ahead, at times co-operatively and at times competitively," said Brad Smith, Microsoft's general counsel.

Microsoft will extend $75 million in credit toward Microsoft software at IBM. IBM will not make claims for server monetary damages for two years and will not try to recover damages on server claims made before 30 June2002.

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