Microsoft, Iowa agree to $180 million antitrust settlement

Iowa - A judge has given preliminary approval to Microsoft’s $180 million settlement in a class-action lawsuit. The plaintiffs alleged that from 1994 to 2006 Microsoft used its dominating market position to overcharge Iowans on its Windows operating system and Office suite. State residents will be able to apply for cash rebates and state agencies could get millions of dollars in vouchers.

No receipt is needed to get the cash and consumers can apply for up to $200 back through the mail or $100 through the Internet. Buyers of Windows will get $16 while Office purchasers have a rebate of $29. Other Microsoft products have between a $10 and $25 cash settlement offer.

Microsoft has offered similar type of settlements to consumers in other states and millions often go unclaimed. In this case, the judge has mandated that half of the unclaimed portion go to Iowa schools in form of vouchers. One million dollars of unclaimed money will also go to the Department of Eduction and the Legal Aid Society.

While $180 million certainly is a big chunk of change, Microsoft could have lost much more. The plaintiffs originally sought $329 million which could have been tripled under state law. While consumers get some money back, the lawyers are the ones making the big bucks in this case. The main prosecuting attorney, Roxanne Conlin, and her firm have requested $75 million dollars in costs and fees. Microsoft says it won’t oppose the request.

The judge has scheduled a hearing on August 31st to give final approval to the settlement.