Apple calls for Microsoft to pay cash for settlement
Published: 07 Dec 2001 11:58 GMT
Apple Computer chief executive Steve Jobs said on Thursday that Microsoft should give $1bn in cash to help schools, instead of software and some money, to settle more than 100 consumer lawsuits.
Jobs' statement came one day before Apple plans to file a supplemental legal brief further contesting the legitimacy of the proposed settlement of the suits.
Microsoft and attorneys working the cases, which are consolidated in a Baltimore federal court, cut the controversial deal in late November. Attorneys for Microsoft and the plaintiffs are set to return to court on Monday to complete a hearing before US District Judge J. Frederick Motz.
"We think a far better settlement is for Microsoft to give their proposed $1 billion -- in cash -- to an independent foundation, which will provide our most needy schools with the computer technology of their choice," Jobs said in the statement.
Apple has been a vocal opponent of the proposed settlement, which would have Microsoft seed a private educational foundation to aid needy schools and donate an estimated $1bn in software, services, training and cash over five years. In all, Microsoft would donate $500m to charitable foundations for these schools and $500m in free software. Microsoft also would provide Windows licences for one million refurbished computers donated to the schools.
Analysts and Microsoft critics warn that Apple's big stake in the educational market could be jeopardised by Microsoft pouring in millions of dollars of free software. Some critics have even called the giveaway anti-competitive.
Under the Microsoft proposal, the software giant could become a key beneficiary. The enticement of free software could encourage school districts to spend $500m on Microsoft-compatible equipment and services. By contrast, if Microsoft were to give $1bn to charitable institutions geared toward building technology capabilities inside of schools, Apple could greatly benefit because schools that could not previously afford new computers would become technology buyers.
"It's very difficult for Apple to compete with a free product," Technology Business Research analyst Tim Deal said. "The settlement just seemed ludicrous to me."
Think it's all over? The antitrust case against Microsoft can still go back the to Court of Appeals, and then there's the European Commission's investigation... See ZDNet UK's DoJ/Microsoft News Section for the latest headlines.
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