By entering into the settlement with the Justice Department, Microsoft avoided the possibility of being hit with a $1 million-a-day fine by the court. The settlement represented only a temporary victory for the Justice Department, as the broader dispute in its antitrust case remains pending in court.
The Justice Department hailed the agreement, but Microsoft said it would not hurt the company, and analysts largely agreed.
Under the agreement, Microsoft agreed to let computer makers install Windows 95 but delete the Internet Explorer icons -- the pictures that launch a program with a click of a computer mouse -- from the computer's desktop or opening screen.
That leaves the Internet Explorer program in the computer but not visible to the average user. Internet Explorer files are integrated with Windows 95 to let other programs, such as Intuit's Quicken personal financial software, access the Internet, Microsoft said.
Computer makers will be able to delete the Internet Explorer files via the ''Add/Delete'' program that comes with Windows 95.
The heart of the government contempt argument was that Microsoft didn't offer computer makers an easy option to remove Internet Explorer using the ''Add/Delete'' function.