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. Last Updated: 07/27/2016

Microsoft Deal Still in Offing

WASHINGTON -- Out-of-court negotiations in the Microsoft anti-monopoly case were expected to continue Tuesday past a deadline set by a U.S. federal judge because hope remains that a settlement could be reached, people familiar with the matter said.

U.S. District Judge Thomas Penfield Jackson privately told attorneys a week ago he was prepared to issue a ruling as early as Tuesday if progress was not made.

Sources said the latest Microsoft settlement proposal, which government attorneys began reviewing Friday, met a threshold for the negotiations to continue.

By the government's standard, the sources said, the elements necessary for a deal include agreements by Microsoft that it would not use the price of Windows to punish computer makers in disfavor, would decouple the Internet browser and other applications from Windows, and would give more flexibility to computer makers in the way they put Windows on their personal computers.