US District Judge J. Frederick Motz described the settlement
proposal as "thinly funded" and raising "legitimate questions since
it appears to provide a means for flooding a part of the
kindergarten through high school market, in which Microsoft has not
traditionally been the strongest player (particularly in relation
to Apple), with Microsoft software and refurbished hardware." Over
40% of US schools use Apple Macintosh computers.
Judge Motz added that he agreed with critics of the proposed
settlement who had argued that the donation of Microsoft software
"could be viewed as constituting court-approved predatory pricing."
He suggested that Microsoft should instead contribute more money
for the purchase of non-Microsoft software or for the purchase of
new computers.
Microsoft has said it will not appeal the ruling and will now
consider whether or not to make an alternative settlement offer in
the class action cases that accuse Microsoft of overcharging for
its products.
