WASHINGTON, Nov 1: A judge approved on Friday a hotly disputed deal between Microsoft and the US government to settle a four-year battle over the software titan’s illegal squelching of competitors.

The settlement imposes no financial penalty but it forces billionaire Bill Gates’ software giant to disclose some technical information and bars anti-competitive agreements on Microsoft products.

“The court is satisfied that the parties have reached a settlement which comports with the public interest,” District Court Judge Colleen Kollar-Kotelly said in her ruling.

“Accordingly, the court will conditionally approve the proposed consent decree as the final judgment in this case.”

Nine out of 10 personal computers in the world use Microsoft’s Windows operating system.

Microsoft has already been convicted of flouting competition rules by abusing its worldwide dominance.

Kollar-Kotelly’s decision was restricted to remedying the damage and curbing future abuse.

The only condition, the judge said in a final judgement for the US District Court of the District of Columbia, was that the two sides agree to give the court power to enforce the decree.

Kollar-Kotelly rejected the demands of nine hold-out states and the District of Columbia, which had demanded tougher action to rein in Microsoft’s vast power.

Many of the battling states’ proposals required drastic changes to Microsoft products and to some aspects of its business that were not illegal, the judge said.

“Plaintiffs present little, if any, legitimate justification for these remedies,” she said.

Microsoft and the federal government, which reached the accord along with nine states in November last year, welcomed the court decision.

“The settlement is a tough, but fair, compromise,” Microsoft said in a statement.

Attorney General John Ashcroft agreed.

“The court’s decision is a major victory for consumers and businesses who can immediately take advantage of the final judgment’s provisions,” Ashcroft said.

“The final judgment provides certainty and stability to the vital computer sector of our economy,” he said.

The hold-out states — California, Connecticut, Florida, Iowa, Kansas, Massachusetts, Minnesota, Utah, West Virginia and District of Columbia — said it was too early to decide on an appeal.

They fought in vain for more stringent measures, including forcing Microsoft to produce a type of build-your-own operating system, which could include competitors’ software applications such as Internet browsers.

“I think we are still sorting it out,” California Assistant Attorney General Tom Greene said by telephone.

“It is far too early to decide whether an appeal is appropriate.”

The court-approved settlement stipulates Microsoft:

— Must create uniform licensing terms for its software.

— May not retaliate against computer makers that use rival products.

— Must allow rival “middleware” products such as media players, instant messaging software and browsers to operate with Windows.

The settlement is to be enforced over five years.

Ashcroft said the Justice Department was “strongly committed” to ensuring that Microsoft complied with the judgment and would closely monitor its implementation.

The judge also warned Microsoft to obey.

“The court will hold Microsoft’s directors, particularly those who testified before this court, responsible for implementing each provision of this remedial decree,” she said.

The judge told Microsoft to set up a compliance committee of three outside members of its board of directors.

In the original settlement, Microsoft and the government had agreed to set up an independent technical committee to check that the company was following the rules.—AFP