The states had spent months in court arguing that drastic measures were needed to restrain the now official monopolists–like yanking the browser out of Windows or forcing Microsoft to share its precious source code. Kollar-Kotelly had none of it. “This suit,” she wrote, “is not the vehicle through which Plaintiff can resolve all existing allegations of anti-competitive conduct…” Putting a happy face on it, the state A.G.s claimed delight at the minor toughening of the original settlement. (For instance, now Microsoft is banned not only from retaliating against competitors, but also isn’t allowed to threaten them. And Kollar-Kotelly said she’ll be very angry if Microsoft violates the rules.)

Bill Gates and CEO Steve Ballmer still have to settle a complaint by the European Commission and deal with civil litigation. They end the suit “five years older and 10 years wiser,” says chief counsel Brad Smith. And, with record earnings and $40 billion in cash, more powerful than ever.