Government, MS Not Talking

Rumors that the world's largest software maker will settle its antitrust suit are just that: rumors. A government source says nobody's talking.

WASHINGTON -- There have been no talks between Microsoft and the government to settle the antitrust case against the software giant, a source close to government lawyers said Tuesday.

"There [havev] been no discussions; nobody has talked yet," said the source. "There's a possibility that Microsoft might make some offer, but the government is generally skeptical it would be a serious offer."

Speculation that Microsoft might settle its antitrust case with the Justice Department and 19 states was fueled by a surprise settlement Monday between the Federal Trade Commission and chip maker Intel.

When the Microsoft trial recessed last month, US District Judge Thomas Penfield Jackson suggested the two sides should use their time wisely. That was widely read as suggesting settlement talks.

But it would be far more difficult to settle the Microsoft case than the Intel case, experts say. Intel settled its case by agreeing to specific, narrow demands laid out in the FTC's complaint.

But there are no specific remedies laid out in the government complaint against Microsoft, and those involved say the question of what remedies would be acceptable to the government or the judge has been a delicate and difficult one.

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