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.”
