WASHINGTON - Microsoft Corp. and the Justice Department, urged onby a judge concerned with the national psyche, tentatively agreed tosettle the historic antitrust case already won by the government.Attorneys general from 18 states are weighing whether to sign ontothe deal.
They are deciding whether they can be satisfied with proposedpenalties Microsoft would face for at least the next five years,according to people familiar with the negotiations, and areseriously considering whether to ask a federal judge for more timeto talk.
An agreement could offer the economy and technology industry aglimpse of national optimism when both have been battered amidconcerns about terrorism and the dramatic downturn in financialmarkets.
U.S. District Judge Colleen Kollar-Kotelly, the new trial judge,had set a deadline of Friday for any settlement, citing "the recenttragic events affecting our nation." Absent a settlement, the nextstage of the trial begins to decide how to punish Microsoft.
Assistant U.S. Attorney General Charles James revealed theprospective agreement to state officials Wednesday and told themMicrosoft had already largely accepted it, sources said, speakingonly on condition of anonymity.
Secret talks in downtown Washington continued today among theattorneys general and top lawyers from Iowa, New York, Connecticutand Wisconsin. If they reject the settlement, they can pursueseveral options, including continuing the suit on their own.
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