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Microsoft, gov't to meet
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March 25, 1999: 1:57 p.m. ET
Software giant and government officials will confer next week
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NEW YORK (CNNfn) - The Justice Department and attorneys general from the 19 states that sued Microsoft Corp. for antitrust violations reportedly plan to meet with the company next week, providing the first glimmer of hope that the two sides are working toward reaching an agreement before the trial resumes next month.
Government officials received a settlement offer from Microsoft (MSFT) on Wednesday. Though officials denounced the offer as insufficient, New Mexico Attorney General Patricia Madrid told Reuters the two sides will meet next Tuesday to discuss settlement issues.
A Microsoft spokesman declined comment and a spokesman for the Justice Department also declined comment.
The trial, which has been in recess since late February, is scheduled to resume April 12. Presiding U.S. District Judge Thomas Penfield Jackson urged the software giant and the government to try to work out their differences during the current trial recess.
The Justice Department and 19 states filed a lawsuit against Microsoft last year, accusing the software giant of using its monopoly status in the operating system market to stifle competition.
Though terms of Microsoft's settlement proposal haven't bee disclosed, the issue of the company's ability to add new features to its Windows operating system is said to be non-negotiable.
Microsoft's refusal to concede on that issue could derail any possible settlement, since bundling is one of the key issues in the government's case.
In particular, the Justice Department has said Microsoft's actions have harmed Netscape Communications Corp., which saw the once-dominant market share of its Navigator product plunge after Microsoft integrated IE into Windows.
Analysts and legal experts, however, believe the company is willing to give some ground on its exclusive contracts and other issues.
"I get the sense that [Microsoft] would like to settle the case on the right terms," said Art Russell, an analyst at Edward Jones. "The contract language and exclusionary deals may have been more important when they were trying to catch up to Netscape in the browser market. Now that they're even, it's not that big a deal."
Microsoft shares were up 4-3/4 at 176 in midday trading. 
-- from staff and wire reports
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