Critics Say Microsoft Settlement Unfair

Apple Computer says a proposed settlement that would end Microsoft Corporation's ongoing battle with more than 100 individuals and corporations is unfair. Under the proposal, now being considered by a Baltimore federal judge, Microsoft would donate $1 billion worth of hardware and software to schools selected by a national eLearning Foundation. But Apple and others say such a move would only benefit Microsoft by creating a long-term demand in schools for the Windows operating system and Microsoft software. Schools represent Apple's last bastion of market share. The settlement calls only for the donation of Microsoft software.

If approved, the ruling would be in effect for five years. K–12 schools with 70 percent or more of their students eligible for free or reduced-price lunches would qualify for Microsoft aid. The proposed donations would include 200,000 refurbished Windows or Macintosh computers and software from a wide variety of the most popular learning tools used in schools today, such as Microsoft Office, Encarta Reference Library, and FrontPage. Microsoft also would donate to the selected schools $18 million for professional development and $160 million for technical support.

Industry analysts say Microsoft would stand to profit nicely in years to come when its software and other products need upgrading. Apple CEO Steven Jobs says, "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."