Slot machines nemesis for EU-MS case

Bernhard Warner

LONDON: Microsoft Corp. software designed for, of all things, cash registers and slot machines played a persuasive role in the European Union's landmark antitrust case labeling it an abusive monopolist.

The European Commission is expected to fine Microsoft hundreds of millions of euros next week and order it to offer a version of its ubiquitous Windows operating system without Windows Media Player audio-visual software installed.

If Competition Commissioner Mario Monti succeeds in getting Microsoft to reconfigure future versions of an operating system that runs more than 95 percent of all PCs -- still considered a longshot by some industry observers -- a piece of Microsoft software known as Windows XP Embedded could be the reason.

The commission says that by bundling Windows Media Player with its operating system, Microsoft is stifling competition in a market that is rapidly becoming a favourite method for consumers to listen to music and watch movies.

Microsoft argues removal of Windows Media Player will limit, if not make impossible, the ability to play songs and film clips on a PC.

For now, the Commission isn't buying the argument.

FIGHTING MICROSOFT WITH MICROSOFT

Microsoft competitor RealNetworks, makers of rival audiovisual software Real Player, used XP Embedded to respond to Microsoft's contention that removing Windows Media Player damages Windows.

In November, RealNetworks demonstrated a PC running on Windows XP -- minus the Windows Media Player -- at a closed hearing of the European Commission on the Microsoft case. The computer appeared to function normally. It was configured with Windows XP Embedded.

Windows XP Embedded is sold to manufacturers of relatively uncomplicated machines such as cash dispensers and cash registers. The manufacturers use the software to design a scaled-down version of Windows XP to run their hardware, excluding non-essential functions like Outlook Express and Media Player.

RealNetworks gave Reuters a demonstration this week on a similarly scaled-down machine with RealPlayer, not Windows Media Player, installed.

To demonstrate that removing Windows Media Player will not affect the PC's multi-media features, Real played a ColdPlay CD and a trailer from "Star Wars Episode II: Attack of the Clones" on the PC through RealPlayer.

"We believe this demonstrates clearly it is technically feasible to separate Windows Media Player from Windows and have a stable operating system. And, Microsoft has done a substantial amount of work to enable that," said Dave Stewart, deputy general counsel for RealNetworks.

"MISLEADING"

Microsoft dismissed the demonstration as "misleading." A company spokesman said it is impossible to strip Windows Media Player entirely from the Windows operating system and have basic playback functionality remain intact on the PC.

"To remove Windows Media Player, you would actually have to rip out the underlying code. And if you do that, you hobble the system completely," said Microsoft spokesman Tom Brookes.

Throughout the lengthy EU investigation, claims and counter-claims about the guts of the Windows operating system and whether it can function without the Windows Media Player have dominated the proceedings.

"It's an issue of semantics," said David Smith, a Gartner Research analyst, and specialist on Microsoft software.

"What Microsoft is claiming is that some things won't work out of the box the way it is packaged and delivered to people today. That is true. But it would not be a huge effort to change it," he said.

Microsoft responds that is simply not the case.

© Reuters