Microsoft close to monopoly deal

SOFTWARE giant Microsoft was today reported to be reaching agreement with the US government over its anti-monopoly case. More than three years after the Department of Justice first took action against the company, both sides are said to have reached a provisional agreement which must now be agreed to by the individual states embroiled in the case.

The judge presiding over the biggest anti-monopoly case since the break-up of Standard Oil in 1911 has set a Friday deadline for the sides to reach an agreement.

Microsoft chairman Bill Gates said last week that he was 'fairly optimistic‘ that an agreement was near, but predicted negotiations on a final settlement may drag on beyond Friday.

The terms of the deal are thought to involve no basic changes in the design of Microsoft's Windows software and no new requirements regarding disclosure of the underlying programming code.

That would leave much of Microsoft's market power undiminished and represent at least a partial victory for the company, which was originally threatened with being broken up into separate operating units.

The deal is also thought to include provision for establishing an independent panel to monitor the company for five years.