Antitrust trial could cost Microsoft millions in compensation

Microsoft may need to pay out millions in compensation to users if it loses its antitrust case against the US Department of Justice (DoJ).

DoJ lawyers say users worldwide can sue the software giant for overcharging for its Windows software, if they can persuade a US court the pricing has been anti-competitive.

Any compensation will be outside the remit of the current antitrust trial, and the DoJ won't speculate on the amount of a possible overcharge. But under US antitrust law, users are entitled to three times the amount of actual damages if they can prove their case.

That won't be easy, according to US antitrust lawyer, Peter Ward, of law firm Baker, Doneldson, Bearman and Caldwell. The price of Windows software has been coming down and bundling with hardware will make it difficult to distinguish where the overcharge is coming from.

Ward said users in UK corporates will need to hire a US lawyer to fight their corner, but if a class action suit is successful, the burden will be on Microsoft to contact every eligible claimant in the class and make reparations.

"You might want to consult with your attorney," Ward advised. "Or you might just sit back and wait for someone else to file a class action suit on your behalf. As long as you are included in the class, after the lawyers skim off their cut, you'll be able to share the proceeds."

UK law firm, Taylor Joynson Garrett, warned that UK firms would probably not gain by filing a suit themselves. "If you lose against Microsoft, you'll have massive legal fees that could make any overcharging pay-out pale into insignificance," said partner Martin Baker. "It doesn't work on any rational cost-benefit analysis."