Google (NASDAQ: GOOG) has complained to the Justice Department that Microsoft's (NASDAQ: MSFT) new Vista operating system made it difficult for companies to run desktop search functions on the system from the world's largest software company.

Rather than put up a fight over the antitrust implications, Microsoft has made changes to Vista to avoid a battle with both federal and state governments. The Justice Department and seventeen states have agreed to Microsoft's solution to the problem.

Perhaps Microsoft is getting wise in its old age. Or, perhaps it is getting timid. The company has been hit with antitrust actions in Europe and the U.S. over matters that range from using its operating system to give its internet browser advantages over Netscape to harming RealNetworks (NASDAQ: RNWK) by pushing the Window Media Player with its operating system. Microsoft ended up paying billions of dollars in fines and settlements.

The news certainly represents a change for heart. Microsoft has gotten out in front of the problem rather than waiting to fight an accusation brought by a government agency.

For better or worse, this is a new Microsoft.

Douglas A. McIntyre is a partner at 24/7 Wall St.

MOST NOTEWORTHY: Several online brokerage firms and RealNetworks (RNWK) topped today's list of initiations.

• Morgan Stanley initiated E*Trade Financial Corp. (NYSE:ET) and TD Ameritrade Holding Corp. (NASDAQ:AMTD) with Overweight ratings while starting Charles Schwab Corp. (NASDAQ:SCHW) with an Equal Weight on valuation. The firm prefers E*Trade and TD Ameritrade based on their smaller size and earlier stages of capitalization.
• RealNetworks Inc. (NASDAQ:RNWK) was assumed with an Underperform rating and $8.50 target at Jefferies; The firm considers RealNetworks' valuation expensive given the risks in the mobile and music services business.

OTHER INITIATIONS:

• Crocs Inc. (NASDAQ:CROX) was initiated with a Buy rating and $51 target at Nollenberger, as they believe the Crocs' product has created a category in footwear and outgrown its fad stage.
• The Western Union Co. (NYSE:WU) was started at Wachovia with a Market Perform rating; The firm expects near-term pressure on shares given the immigration reform concerns, brand repair costs and additional pricing pressure.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).