June 20, 2007

AG Singer Reaches Agreement With Microsoft (Cont.)

Third, Microsoft will inform other desktop search companies, computer manufacturers, and end users that the desktop search index in Vista is designed to run in the background and cede precedence over computing resources to any other software product, including third-party desktop search products and their respective search indices. Microsoft will also provide technical information to other desktop search companies that will enable them to optimize the priority of their indexers as against the Microsoft index.

Google contends that desktop search in Windows Vista is a new "Microsoft Middleware Product" under the 2002 Final Judgments, which means that Microsoft likely is required to allow computer manufacturer and user choice of competitive alternatives. As Plaintiffs were able to agree on a satisfactory resolution of the Google complaint, it was unnecessary for Plaintiffs to reach a joint resolution of the question of whether desktop search is a new Microsoft Middleware Product under the Final Judgments that would likely trigger user choice obligations.

Specifically, Plaintiffs did not agree on whether desktop search in Vista meets the decree requirement that it be functionality "that is first licensed, distributed or sold by Microsoft after the entry of this Final Judgment" (emphasis added). Plaintiffs also disagreed concerning application of certain other decree language.

The District of Columbia joins other government Plaintiffs in hoping that the implementation of the agreement by Microsoft will succeed in providing manufacturer and user choice in computer desktop search, so that issues of decree interpretation are moot. We are appreciative of the efforts of attorneys and other staff in the States, the United States Department of Justice, and Microsoft for bringing the settlement discussions to resolution.

Page 2 of 2      1  2