SEATTLE (Reuters) - No. 1 software maker Microsoft says it has settled a 16-month-long antitrust lawsuit with AOL Time Warner, agreeing to pay the media giant $750 million (453 million pounds), license its browser technology to AOL and work together on digital media distribution and technology.
The long-time rivals called the agreement a step that would lead to "more rapid deployment of digital media for consumers". It also marks the end of one of Microsoft's most contentious legal disputes following the software giant's final antitrust settlement with the federal government late last year.
Microsoft Chairman Bill Gates and Dick Parsons, AOL Time Warner's chairman and chief executive officer, were scheduled to hold a joint news conference call at 2:15 p.m. local time (10.15 p.m. British time) on Thursday.
AOL Time Warner's Netscape unit, known for its once-leading Netscape browser technology, had brought suit against Microsoft in January 2002, alleging that the Redmond, Washington-based software maker had violated antitrust law by unfairly promoting its Internet Explorer browser.
AOL's Internet service, however, uses Microsoft's browser technology. In Thursday's agreement, Microsoft agreed to license that technology to AOL, royalty-free, for seven years.
The two companies also said they would work together to develop digital media technology that would give users better access to content such as music, videos and news.
"A lot has changed in the last few years, not only in the marketplace, but also for Microsoft and AOL Time Warner. We're pleased to reach this new agreement that's forward-looking and provides for a higher level of technical cooperation while, at the same time, the companies will continue to compete in a number of areas," Gates said in a prepared statement.
Microsoft shares closed one cent lower on Nasdaq at $24.40 ahead of the news, while AOL Time Warner shares also closed one cent lower at $14.85 on the New York Stock Exchange.
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Source:
Reuters
