``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.
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