The Hard Choices About Microsoft: Not Yet, Says FTC : Technology: The software company’s stock rises $4 a share after the commission says it has delayed a long-awaited decision on an antitrust case.

The Federal Trade Commission on Friday delayed a long-awaited decision on whether to move ahead with an antitrust action against Microsoft Corp. A source said that a ruling would likely come next week, perhaps as early as Tuesday.

In a brief statement, the FTC said only that it would discuss the controversial case again “in the near future.”

Wall Street interpreted the non-decision as a sign that the FTC lacks a strong case against Microsoft after more than 2 1/2 years of investigation. Microsoft’s stock, which traded as low as $82.25 in the morning, rose $4 a share, to $89, after release of the FTC statement.

But the source said it was premature to draw conclusions from the delay. He said the commissioners merely wanted more time to discuss the complicated and politically sensitive case.

A settlement remains a possibility. Microsoft Chairman Bill Gates met with FTC officials this week, but as of Friday the issue was unresolved.

The FTC has been investigating allegations that Microsoft has abused its position as the near-monopoly supplier of personal computer operating systems, the software that controls the basic operations of a PC. Competitors allege that the Redmond, Wash., company has used its control of the DOS and Windows operating systems to lock out competitors and gain unfair advantage in selling applications software, such as spreadsheets and data bases.

Microsoft has denied engaging in any unfair business practices.

Few expect the FTC to go so far as to seek the outright break-up of Microsoft, but the FTC staff has recommended a civil lawsuit aimed at blocking certain business practices, notably Microsoft’s licensing arrangements for DOS, according to the newsletter FTC:Watch.

The FTC may also seek strictures on the relationship between Microsoft’s two main business units, the operating systems group and the applications software group. Inside knowledge of the workings of operating systems can, in principle, provide a big advantage in developing applications software.

The investigation has been controversial both inside and outside the computer industry.

Some say it’s absurd to attack one of America’s most successful high-tech companies; others say an unchecked Microsoft will wipe out competition in PC software.

“In a matter of this significance and this degree of complexity, it wouldn’t be at all surprising for them to need additional discussions,” said Alan Palmer, an attorney with Morrison & Foerster and a former chief of the FTC’s Bureau of Competition.