BBC News Online: In Depth: Microsoft

Microsoft settlement hopes fade

Newspaper reports from Washington say officials are highly sceptical of the proposals from Microsoft - said to include a promise to separate its Windows operating system from its internet-browser software.

Judge Thomas Penfield Jackson is expected to deliver his verdict on Tuesday unless the two sides make progress in the settlement talks.

The judge has hinted that he will rule against the company, which stands accused of abusing its monopoly power over the computer industry by forcing Windows customers to use Microsoft software to connect with the internet.

Correspondents say the government has now retreated from plans to break up Microsoft if the company loses the case.

Both sides have reasons to push for a settlement instead of waiting for a ruling by Judge Jackson.

Late last year, the judge found that Microsoft used monopoly power to harm consumers, competitors and other companies.

Most court watchers expect Judge Jackson to find that Microsoft is guilty of some anti-trust violations.

If he does, he could force the company to change its behaviour or order the break up of the company.

States soften stance

Microsoft has vowed to fight a break-up, and has expressed a desire to settle the case.

A ruling could also be used against the software giant in the more than 100 class-action lawsuits filed against it.
The Justice Department has hinted that it might be open to broad restrictions on Microsoft's market behaviour instead of splitting the company.

Some of the 19 states that joined the federal government in a suit have shown a willingness to soften their position, opening up some room for negotiation.

By agreeing to a settlement, the department would avoid a lengthy legal battle with Microsoft in the appellate courts, and the agreement could take effect immediately.

The department would also avoid the risk that Judge Jackson's ruling be overturned on appeal.