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Business Digest
Municipalities file suit against Microsoft

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Microsoft, which has agreed to pay $1.8 billion to settle consumer antitrust suits, was sued by Los Angeles County and the cities of Los Angeles and San Francisco over claims that the company overcharged them for its Windows software.

The lawsuit filed by six California municipalities in state court in San Francisco yesterday is based on claims that Microsoft overcharged government customers because of its monopoly in operating-system software. Microsoft settled a consumer suit in California last year that excluded government agencies.

"We value our relationship with these important cities and we are grateful for the opportunity to provide them with great software at reasonable prices," said Microsoft spokeswoman Stacy Drake. Drake said Microsoft would provide additional comment when company lawyers have had a chance to read the complaint.

More than 100 consumer lawsuits were filed against Microsoft after a U.S. appeals court in 2001 ruled against the company in an antitrust suit brought by the U.S. government. Microsoft has agreed to settle consumer antitrust suits in 14 states and the District of Columbia. Consumer suits are pending in Nebraska, Wisconsin, Iowa and New York.

Microsoft

Music store near launch

SEATTLE — Microsoft is expected to launch its new MSN Music online music store next week, entering the crowded market of digital-music vendors that so far has been led by Apple Computer.

The launch comes as the PC industry revs up a holiday-season marketing push that emphasizes digital-media capabilities of PCs and peripheral devices such as portable media players.

Also expected to be released next week are portable media players developed by Microsoft but produced by vendors such as Samsung and Creative. Unlike Apple's popular iPod music players, these devices also record and play video on small color screens and they are designed primarily to synchronize with Windows-based PCs. News.com and other tech publications have widely reported that the devices go on sale the first week of September.

Microsoft disclosed plans for its MSN Music store last spring but did not specify when sales would begin. A spokeswoman confirmed that a major announcement is planned next week, and an executive is briefing reporters on the news Wednesday.
 
The music-store launch may coincide with the release of the newest version of Microsoft's digital-media player, version 10, that's already being distributed on the Internet for testing.

Nation and World

Airbus

Thai Airways to buy A380s

PARIS — Thai Airways has agreed to buy six Airbus A380s, becoming the 13th airline to order the new "superjumbo" airplane, the European aircraft maker said yesterday.

Thai Airways International signed a memorandum of understanding to acquire six of the 555-seaters in 2008 and 2009, as well as two A340 long-range jets, Airbus said in a statement.

The deal is worth up to $2.1 billion at list prices. But Airbus spokesman Tore Prang said final details of the order had yet to be negotiated.

Personal finance

Bankruptcy filings drop

WASHINGTON — Personal bankruptcies appear to have broken the upward trend of recent years, slipping 0.8 percent in the 12 months ending June 30, figures released yesterday show. An expert said the decline means that some consumers finally have been able to benefit from an improving economy.

New personal bankruptcy filings declined to 1,599,986 from 1,613,097 in the 12 months ending June 30, according to the data from the Administrative Office of the U.S. Courts.

Total bankruptcy filings, personal and business, edged down 0.9 percent to 1,635,725 — the first annual decline since 2000. The number of business bankruptcy filings declined for the second time since the last reporting period, the 12 months ending March 31.

Compiled from Seattle Times business staff, Bloomberg News and The Associated Press