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Microsoft to pay $750 million to AOL in settlement

Seattle May 30. Microsoft Corp will pay AOL Time Warner $750 millions and let the media company license its browsing software for seven years in a settlement to resolve an anti-trust lawsuit against the software giant, the companies have announced.

The settlement also calls for Microsoft to license its digital media technology to AOL, as well as work with the company to promote digital media initiatives.

Microsoft will provide technical information to AOL to ensure that its products run effectively on the Windows operating system. The agreement resolves a lawsuit the AOL filed against Microsoft in January 2002 on behalf of its subsidiary, Netscape Communications. The complaint was one of several private anti-trust lawsuits still pending against Microsoft over anticompetitive behaviour.

The AOL had alleged in the lawsuit that Microsoft used anti-competitive business practices to ensure the dominance of its Internet Explorer browsing software over Netscape's software. It argued that Microsoft made deals with computer manufacturers and others to shut out Netscape and quash competition. ``These agreements are good news for the AOL service, its members and the Internet as a whole,'' said Jonathan Miller, chairman of the America Online division. — AP

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