Microsoft agreed to pay IBM $775 million to settle claims growing out of the antitrust lawsuit the U.S. Department of Justice brought against Microsoft in 1995. IBM also received a $75 million credit toward the use of Microsoft software. The settlement addressed discriminatory pricing and overcharge claims stemming from the federal antitrust case. The claims first emerged in the late 1980’s when Microsoft and IBM agreed to develop the OS/2 operating system and Microsoft proceeded to develop its Windows operating system, undercutting the agreement.