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Mon, Jul 30, 2001 - Page 21 News List

Final test version of XP software out

ON SCHEDULE Analysts say they're confident Microsoft, which has missed deadlines in the past, will release the new operating system on Oct. 25 as planned

BLOOMBERG , REDMOND, WASHINGTON

Allchin, who heads Microsoft's Windows division, said the company isn't developing a contingency plan for Windows in case of successful legal action against the product.

"I can't speculate on what might happen," he said.

Antitrust officials are weighing what action to take against Windows XP. State antitrust enforcers have voiced concern that Microsoft is using XP to expand its operating-system monopoly to Internet services, by adding to XP its programs to play digital music, make Internet phone calls and send instant messages.

Last week, Senator Charles Schumer, a New York Democrat, called on state attorneys general to seek a court order halting the planned release of Windows XP unless Microsoft agrees to make "significant changes." US Justice Department officials also should insist on changes during any negotiations aimed at settling the government's antitrust lawsuit, he said.

Experts say antitrust enforcers may have a hard time convincing a court to halt or delay the release of Windows XP. Any attempt is likely to provoke protests from PC makers, which are spending millions of dollars to combine with Microsoft and Intel Corp in a US$1 billion Windows XP marketing campaign.

"If there is a big legal challenge, the PC makers are going to howl long and hard," said Chris Le Tocq, an analyst at research firm Guernsey Research.

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