The point of contention is the computer search function that puts Google Inc. and other potential rivals at a disadvantage, the Justice Department and Microsoft said on Tuesday.

Under an agreement with the department and 17 state attorneys general and the District of Columbia, Microsoft (Charts, Fortune 500) will build into Vista an option to let users select a default desktop search program on personal computers running Windows.

The function, known as "Instant Search," allows Windows users to enter a search query and get a list of results from their hard drive that contain the search term.

The agreement was made public as part of a joint report that the Justice Department and Microsoft filed late on Tuesday with the court overseeing Microsoft's compliance with a 2002 antitrust consent decree.

As part of the deal, a Microsoft official said the company also had pledged to place links inside the Internet Explorer window and the "Start" navigation menu to make it easier for people to access that default desktop search service.