Print

Mail

wiki links

Removal of Windows link facilitated

Microsoft Corp responded to a ruling it illegally defended its Windows monopoly by freeing computer makers to remove links to its Internet Explorer Web browser.

A US appeals court on June 28 overturned a trial judge's order to split the company in two while upholding findings it illegally protected its Windows dominance. Microsoft's bundling of its Internet Explorer Web browser into Windows, along with license restrictions on computer makers, prevented distribution of a rival browser, the court said.

Microsoft spokesman Jim Cullinan said on Wednesday the company isn't giving computer makers permission to remove other features of Windows XP, the latest version of the operating system that runs 90 percent of the world's personal computers. Due on the market Oct. 25, Windows XP will include software to play digital music, make Internet telephone calls and edit digital photographs.

State antitrust experts say bundling of these applications would hurt competition, and they may seek court-ordered changes.

They downplayed the significance of Wednesday's announcement by the software giant.

"Microsoft has won the browser war," said Iowa Attorney General Tom Miller, a leader of 19 states that joined the US Justice Department in suing the company. The company already has thwarted browser competition from Netscape Communications Corp, now part of AOL Time Warner Inc, he said. "What are they offering? What is the change?"

A continued refusal by Microsoft to let computer makers remove the Windows Media Player or other applications bundled into Windows XP and substitute programs made by other software companies "would be troublesome," Miller said.

"We are taking this step today to address specific violations identified by the court of appeals," Cullinan said. "Nothing in the court of appeals decision addresses other technologies in Windows."

The company said it was making the changes because "some provisions in our existing Windows licenses have been ruled improper by the court, so we are providing computer manufacturers with greater flexibility," Microsoft Chief Executive Steve Ballmer said in a statement. Ballmer said the company hopes to work with the government to resolve remaining issues.

Redmond, Washington-based Microsoft shares rose US$2.02 to US$66.50. The stock has gained 53 percent this year. The company also announced that its fiscal fourth quarter sales were US$6.5 billion to US$6.6 billion, beating forecasts, while profit from operations was in line with expectations.

"Microsoft is clearly scrambling," said AOL Time Warner spokeswoman Kathy McKiernan, referring to the company's response to the appeals court ruling. "But they still have a long way to go to address the anti-consumer, anti-competitive elements of Windows XP."

AOL Time Warner and Microsoft were unable to agree on terms under which America Online's software would remain in the next version of Windows.

Justice Department spokeswoman Gina Talamona had no comment.

Legal experts were also skeptical. Microsoft's concessions reflected "a very narrow reading of what the court required," said Andrew Gavil, an antitrust expert at Howard University law school.

"I don't know how that addresses the problem of Microsoft's misuse of its monopoly," said Herbert Hovenkamp, an antitrust expert at the University of Iowa law school.

``The remedy is not just supposed to look back and say, `Don't do this again.' [It must] solve the problem of the monopolistic structure of the Windows market.''

Wednesdays concessions may be intended to head off antitrust enforcers from seeking changes in Windows XP before its release, experts said. The appeals court ordered new hearings on remedies before a judge who is yet to be designated.

"I suspect Microsoft and their lawyers sat down and said, `What is it we have to do and don't have wiggle room on?'" said Ernest Gellhorn, an antitrust professor at George Mason University. ``I have a feeling that I'm not seeing everything. It doesn't say anything about co-mingling of code.''

The appeals court said that such co-mingling of the Internet Explorer and Windows code illegally thwarted distribution of Navigator.

"It could be they are also trying to send a message that they are ready to negotiate and are ready to make changes in their method of operation as a way of fending off additional discussion of a breakup," Gavil said.

Microsoft said computer makers will be able to remove personal computer desktop icons and options that let users open Internet Explorer in Windows 98, Millennium, XP and 2000. The changes won't delay the release of Windows XP, which many computer makers are hoping will help them boost sales.

The computer makers will be able to add any desktop shortcuts they choose for programs that run on Windows XP. Microsoft had planned to ship XP with few of these so-called desktop icons. The desktop is the screen users first see when they turn on their computers.

The original design for Windows XP didn't envision any icons on the desktop. The company was in negotiations with computer makers about whether they would be able to add whatever links they want to the desktop screen, Cullinan said.

Microsoft said it will let consumers use the add/remove function in Windows, which can be used to delete programs and remove Internet Explorer. That wasn't possible in previous versions.

Microsoft isn't giving PC makers complete freedom to customize the program, said analyst Chris Le Tocq at market researcher Guernsey Research.

Computer makers won't be able to remove links in the start menu to Microsoft's MSN Internet-access service or the company's Windows Media Player for downloading Internet audio and video files, he said.

Wednesday's announcement "shows that Microsoft will live by the letter of the law and will apply it as narrowly as possible," said Brendan Barnicle, an analyst at Pacific Crest Securities.

He predicted the company won't allow computer makers to remove links to the Media Player until ordered to do so by a judge.
This story has been viewed 1893 times.