Microsoft Advises Workers on Deal

Microsoft Corp. this week outlined for employees the requirements of the company’s proposed settlement with the Justice Department and urged them not to discuss the plan via e-mail.

Previously, the software giant was seriously hurt in different courts by electronic correspondence that was exhumed as part of the litigation process.

In a companywide message sent Thursday, Microsoft Chief Executive Steve Ballmer said he was “personally committed” to making sure everyone “complies fully with the terms.” The agreement becomes effective Dec. 16, although a federal judge won’t rule until next year on whether it should be permanently adopted by the court.

Ballmer passed along an analysis by Dave Heiner, Microsoft associate general counsel, that said e-mail about the agreement “is not likely to be productive” unless it is a request from Microsoft’s lawyers. Such e-mails are typically exempt from use in court. Instead, Heiner told employees to orally ask questions of their managers.

Heiner wrote that some of the biggest changes in the way Microsoft does business will occur in the group that licenses Windows operating systems.

Instead of favoring some manufacturers that promote other Microsoft programs on their machines, Microsoft must give straightforward price discounts based on volume. And it can’t retaliate by withholding technical information from companies that promote competing services, Heiner wrote.

Microsoft competitors will fight the settlement in hearings next year. Nine states also will continue their part of the lawsuit, pushing for more restrictions.

And the Justice Department’s settlement will come under scrutiny by the Senate Judiciary Committee this month. Committee member Sen. Orrin G. Hatch (R-Utah) on Thursday sent eight pages of sometimes pointed questions to the Justice Department.

The letter asks how the settlement will “terminate the monopoly Microsoft was found by the appellate court to have unlawfully maintained” and “deny to Microsoft the fruits of its [antitrust] violations.” Those two objectives were among the goals for a final ruling set out by an appeals court that found against Microsoft.

The Justice Department has said the deal “will eliminate Microsoft’s illegal practices, prevent recurrence of the same or similar practices and restore the competitive threat.”

Microsoft shares fell 63 cents to $64.21 in Nasdaq trading Friday.