Gates wins with 'sweet' US deal

GAME, set and match to Bill Gates. Microsoft, the tycoon's £220bn software giant, is poised to strike a deal with the US government to keep its dominance of the computer industry intact.

The shares, already double their lows, leapt another 5%. Microsoft faced break-up last year after a judge ruled that it had abused the market dominance of its Windows software to crush rivals.

Competitors such as Netscape and Lotus might have benefited from the break-up, but the decision was later overturned. Under the deal, being agreed in time for today's court-imposed deadline, Microsoft must give rivals parts of the Windows code.

This will make it easier for them to develop their own programmes. It must also give PC makers greater freedom to load non-Microsoft programmes alongside Windows on new PCs. Adam Lawson, software analyst at Teather & Greenwood, says: 'They've got away with a lovely sweet deal. They can continue in exactly the same position as they were.'

Gates handed over his chief executive post to Steve Ballmer last year, though he kept the real power and a £28bn stake.