In 2000, US District Judge Thomas Penfield Jackson identified
IBM as having been impacted in its business by Microsoft's
anticompetitive practices, including the use of discriminatory
pricing to edge IBM's OS/2 operating system and SmartSuite software
out of the market.
IBM didn't sue. Instead, the two companies set out to find a
resolution that would avoid protracted litigation.
In addition to addressing all discriminatory pricing and
overcharge claims based on the findings in the US antitrust case,
last week's settlement resolves all antitrust claims, including
claims related to the IBM OS/2 operating system and SmartSuite
products.
However, the deal does not apply to claims for harm to IBM’s
server hardware and server software businesses. Instead, IBM has
undertaken 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 30th June, 2002.
Brad Smith, general counsel and senior vice president,
Microsoft, said, "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."
Ed Lineen, senior vice president and general counsel, IBM, said,
“IBM is pleased that we have amicably resolved these long standing
issues.”
