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Chicago Tribune
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Microsoft Corp.’s lawyers met with government attorneys in Washington on Friday in high-stakes, last-minute negotiations to avoid an antitrust lawsuit with potentially far-reaching ramifications for the software giant’s future.

A Department of Justice spokeswoman said those attending included Microsoft’s chief lawyer, William Neukom; Assistant Atty. Gen. Joel Klein, who heads the department’s antitrust division, and the attorneys general from Iowa and Connecticut.

Microsoft Chairman Bill Gates’ late-night phone calls to Washington helped set the stage for Thursday’s unexpected reprieve, but the turning point occurred when Microsoft agreed to talk seriously about changing contracts with computer makers, Internet service providers and Internet content providers.

The company also agreed to reconsider how the first screen, or desktop, on Windows 98 is set up on personal computers.

Compared with allegations in draft complaints prepared by attorneys general and the Justice Department, the range of issues on the negotiating table was narrow. That might be why Microsoft is talking settlement on practices the company has vigorously defended recently.