Nine states challenging a proposed settlement of Microsoft Corp's US antitrust case may ask a federal judge to force the No. 1 software company to offer a version of its Windows operating system without a Web browser and other applications, say people familiar with the discussions.
The states, led by California, Connecticut, Massachusetts and Iowa, are preparing to submit the plan tomorrow to US District Judge Colleen Kollar-Kotelly. She has also been asked to approve the proposed settlement among Microsoft, the US Justice Department and nine other states, and scheduled March hearings on possible additional remedies.
The purpose of any remedies is "to keep the market open and robustly competitive and see that there is an agreement that is genuinely enforceable," said California Attorney General Bill Lockyer, declining to comment on specifics. The nine dissenters "agree with the goals but don't think they have been adequately met" by the proposed settlement.
Stripped-down XP
The dissenting states may seek to require that Microsoft offer a less-expensive, stripped-down version of the Windows XP operating system without Internet Explorer or other applications such as the Windows Media Player or the Microsoft Outlook e-mail program, the people said.
The proposal would force Microsoft to make its popular Windows Office suite of applications run on competing operating systems, such as Linux, Unix and Apple Computer Inc's Mac OS, they said. Microsoft now makes a version of its office software that runs on Apple's Macintosh computers. Microsoft's contract to furnish the software expires next August, and state antitrust enforcers are concerned it might try to cancel the arrangement.
Sharing explorer's source code
Also under discussion is a proposal to force Microsoft to disclose the source code for the Internet Explorer Web browser, people said. The disclosure would let competing software companies develop their own variation of the Web browsing software or write applications that would run on it, the people said.
The dissenters also will urge that Windows include a version of the Java programming language made by Sun Microsystems Inc to allow applications to operate on competing computer operating systems, people said.
The appeals court that upheld findings Microsoft illegally protected its Windows monopoly said the company deliberately tried to subvert Java's use by computer programmers to discourage development of applications that could run on competing operating systems.
The appeals court set aside a judge's order to split Microsoft into two companies and ordered new hearings on remedies.
Microsoft shares, which have increased almost 12 percent since the settlement was announced Nov. 2, rose US$0.55 to US$68.65.
The states will also propose provisions to close what critics call loopholes in the settlement agreement. Microsoft agreed to give computer makers the freedom to hide or delete shortcuts to Microsoft programs and promote applications made by competitors, such as RealNetworks Inc's RealPlayer for digital music and streaming video.
The New York Times reported today that the states will ask for tougher enforcement sanctions and elimination of loopholes in the proposed settlement.
Critics argue that the proposed settlement is insufficient because Microsoft can still use Windows, which powers 95 percent of the world's computers, to leverage sales of other applications.
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