MS Settles Second Calif. Antitrust Claim

Lawyers for several California municipalities said Tuesday that Microsoft has agreed to pay $70 million in vouchers to settle an antitrust claim, pending court approval. The suit, filed in August 2004, claimed that the Redmond company had overcharged government customers. While denying the charges, Microsoft said that it settled the case out of a desire to focus on the future. The company argued that its prices for software were fair.

The vouchers, which can be used for either new hardware or software, will be divided among California state and local government agencies. Microsoft would reimburse purchases with cash refunds, according to the settlement. The agreement is the second for Microsoft in California. Another, settled in 2003, forced Microsoft to reimburse state residents for overcharging for its Windows operating system.