Will Microsoft help Apple?
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December 7, 2001: 7:33 a.m. ET
States reportedly to ask for Apple software and Java support from Microsoft.
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NEW YORK (CNN/Money) - Apple Computer, Sun Microsystems and other companies may benefit if restrictions some states say should be imposed on Microsoft are accepted by a federal judge, a published report said Friday.
The restrictions, to be proposed by the nine states that declined to join Microsoft's tentative settlement with the Justice Department last month, include an extension of an agreement requiring Microsoft to offer its "Office" software for Apple's Macintosh computer line, according to the Wall Street Journal.
That five-year agreement was slated to end in August, but the states are pushing for an extension since they fear Microsoft may use Apple's dependence on the software as a "club" to obtain concessions from its smaller rival, the paper reported.
"We're working closely with the Macintosh business unit at Microsoft to bring out some great products, and we don't see this partnership changing," Apple spokeswoman, Katie Cotton, told the paper.
The states may also ask that Microsoft carry Java support on its Windows operating system after dropping it from products earlier this year, according to the Journal. Users of the Java programming language, originally developed by Sun Microsystems, were forced to download support off the Internet after Microsoft discontinued it.
In addition, Apple Computer is asking that Microsoft's $1 billion settlement of private antitrust cases be made in cash, the paper reported.
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Microsoft originally proposed giving $1 billion in hardware and software to needy schools, but Apple said that agreement would only increase Microsoft's toehold in the education market, where Apple is traditionally strong.
Shares of Microsoft (MSFT: Research, Estimates) rose 55 cents to $68.65 Thursday, Apple Computer (AAPL: Research, Estimates) fell 98 cents to $22.78, and Sun (SUNW: down $0.42 to $14.15, Research, Estimates) lost 42 cents to $14.15.
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