Microsoft Settles California Antitrust Suit

January 11, 2003

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Microsoft has agreed to give about 13 million California individuals and businesses $1.1 billion worth of vouchers for computer hardware and software as settlement of a consumer antitrust lawsuit.

The case is the largest filed by 17 states against Microsoft following federal court decisions that found Microsoft had violated U.S. antitrust laws in its zeal to protect the virtual monopoly held by its Windows operating system. The class action suit had been scheduled to go to trial next month in San Francisco.

If Superior Court Judge Paul H. Alvarado approves the settlement, Californians will have four months to file claims. Anyone who purchased any Microsoft software between February 1995 and December 2001 will be able to file for vouchers that will be redeemable on a formula yet to be negotiated. Businesses and others who purchased large amounts of software will stand to collect sizeable benefits.

As part of the settlement, Microsoft has agreed that it will attempt to contact all persons eligible for the vouchers. It will also open its registration database to help consumers determine if they qualify.

The California case was the largest still pending against the company as a result of the federal antitrust action, although there are other antirust cases against Microsoft in various stages of prosecution both in the U.S. and Europe.

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