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Microsoft Offers Compromise in Antitrust Case, Lawsuits Are on Hold

Windows 98 won%squott ship to manufacturing on Friday, and states won%squott file lawsuits.

By Marc Ferranti, IDG News Service, New York Bureau   

The Department of Justice has issued a statement saying that while the discussions continue over the next several days, Microsoft will not ship Windows 98, and the Justice Department and states will not file any lawsuits.

In a statement Microsoft confirmed that it has completed all the work to develop Windows 98, but the company has agreed with the Department of Justice and the state attorneys general not to release the product until Monday.

Microsoft said it is taking this step so that discussions with the government, which have been proceeding over the course of a week, can continue.

The company made the overture to the Justice Department, which is now in discussion with several attorneys general about a compromise, the sources said.

%dquotSince we were working on the case and coordinating with Justice, I think there was the hope on their part that all the cases could be settled...at once,%dquot said one source at a state attorney general%squots office.

The discussions about a compromise will most likely continue over the weekend, said another state source.

For its part, Microsoft said it is continuing with plans to release the operating system to consumers on June 25.