As expected, a federal appeals court said it will consider whether a settlement inked between Microsoft, the U.S. Department of Justice and some state attorneys general was consistent with the public interest. The judges are required by law to hear appeals from the lower court.

In November, U.S. District Judge Colleen Kollar-Kotelly approved a consent decree in the long-running antitrust case, which the Justice Department and the states filed in 1998. Kollar-Kotelly rejected stricter remedies proposed by some of the state attorneys general, saying the restrictions on Microsoft were so outlandish that they amounted to an "unjustified manipulation of the marketplace" designed to give competitors such as Sun Microsystems, Apple Computer and Red Hat an "artificial advantage."

Two states, Massachusetts and West Virginia, decided to appeal Kollar-Kotelly's decision.

A Microsoft representative on Thursday said, "This is a procedural matter. The parties have a right to appeal, and there is no question that the appeal would be heard.... Our focus right now is on full and complete compliance with the final judgments."

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