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Microsoft May Escape Antitrust Case With Slap, Not A Punch, In The Face Settlement Talks Progress Justice Dept. looks ready to impose "pretty minor' conditions on company.(A)

Investor's Business Daily

| November 02, 2001 | COPYRIGHT 2001 Investor's Business Daily, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: PATRICK SEITZ

The landmark antitrust case against software king Microsoft Corp. could end with a whimper.

Microsoft and the Justice Department reportedly have reached a tentative settlement in the 3-year-old case. Justice officials now are trying to convince the 18 state attorneys general who joined the case against Microsoft to sign off on the deal.

Analysts give the government a 50-50 chance of getting all the states to agree. The settlement could still fall apart. The two sides are working under a court-imposed Friday deadline to settle the case or prepare for further hearings in March on how to prevent future violations by Microsoft.

The settlement details are favorable to Microsoft, analysts say. "The company is looking at a remedy that is much less restrictive than anybody had thought would come out of the negotiations," said Kay Doremus, an analyst with Banc of America Capital Management. "It's definitely a positive for Microsoft."

Bundling Gets The Boot

The settlement would impose some restrictions on Microsoft during the next five, perhaps seven, years.

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