Microsoft to Pay States in Antitrust Settlement

Microsoft Corp. is paying about $10 million to reimburse the legal bills of nine states that have settled the antitrust case against the software giant, according to interviews with state representatives.

Other states that opted to continue pursuing the case rather than settle will have to wait for reimbursement until they end their effort to win more stringent penalties against Microsoft.

Under federal law, a company found liable for antitrust violations, such as Microsoft, must reimburse taxpayers for the cost of the prosecution. U.S. District Judge Colleen Kollar-Kotelly ordered Microsoft to pay the nine states last week. The checks starting arriving this week.

The law applies only to the states, said Justice Department spokeswoman Gina Talamona.

The federal government will not be reimbursed. In 1999, the Justice Department disclosed that it had spent about $7 million investigating Microsoft in the case.