Microsoft, government fail to settle

C|Net | at | by Mike

The government and Microsoft have failed to settle their landmark antitrust case before the first deadline imposed by a federal judge, sources said Friday. The two sides also appear to have been unable to agree on a mediator for the remaining discussions, indicating that a deep gulf of differences could separate the parties. Lawyers representing Microsoft, the Justice Department and 18 states delivered the news in a conference call Friday with U.S. District Judge Colleen Kollar-Kotelly, said sources familiar with the call. If the parties did not submit a mediator for the judge's approval, she could assign one or allow the process to continue without third-party oversight.