Here is a big ouch for Microsoft – the software giant and IBM today announced they had entered into a settlement agreement related to antitrust issues between the two companies. The net-net is that Micrsoft will be paying Big Blue $775 million, as well as extending $75 million in credit towards deployment of Microsoft software at IBM.
The settlement, as drawn up after a discriminatory pricing and overcharge claims case was filed the federal government against Microsoft in the mid-1990s, resolves most of the antitrust claims. These include claims related to the IBM OS/2 operating system and SmartSuite products, but exclude those related to IBM’s server hardware and server software divisions.
IBM, as part of the settlement, said that it will not assert claims for server monetary damages for two years and will not seek to recover damages on such claims incurred prior to June 30, 2002. Microsoft also released antitrust claims.
“With these antitrust issues behind us, both Microsoft and IBM can move ahead, at times cooperatively and at times competitively, to bring the best products and services to customers,” said Brad Smith, general counsel and senior vice president, Microsoft. “Over the last few years we have been focused on resolving our disputes with other companies, and today’s announcement takes another significant step towards achieving that goal.”
“IBM is pleased that we have amicably resolved these long standing issues,” said Ed Lineen, senior vice president and general counsel, IBM.
