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California cities, counties lose Microsoft suit

Time: 04:04 EST/09:04 GMT | News Source: ComputerWorld | Posted By: Alex Harris

A federal judge yesterday dismissed a lawsuit filed last August by several California cities and counties accusing Microsoft Corp. of overcharging for its products. In the class-action case, the cities and counties accused Microsoft of unfair anticompetitive behavior and unfair business practices in violation of California law. The governmental entities sought monetary damages.

U.S. District Judge Frederick Motz of the U.S. District Court for the District of Maryland granted a motion by Microsoft for dismissal of the lawsuit. Motz dismissed the case because government agencies can't sue under one of the laws they invoked and because they were seeking damages over too broad a time period, according to the judge's opinion. "Today's decision granting Microsoft's motion to dismiss is welcome news," said Microsoft spokeswoman Stacy Drake in a statement sent via e-mail.

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