WinXP may be used as evidence in MS anti-trust case

WASHINGTON: The state attorneys general behind the Microsoft Corp. antitrust

case say they may cite Windows XP as further evidence of the company's predatory

behavior in any further proceedings in the case.

Iowa Attorney General Tom Miller, an outspoken critic of Microsoft, said the

firm's decision to tie new software features into the Windows XP operating

system and use it to promote Internet subscription services has raised concerns

among the 19 state attorneys general who are party to the case.

In a joint statement dated Wednesday with Connecticut Attorney General

Richard Blumenthal, Miller termed Microsoft's Windows XP strategy as "very

troubling." "We're concerned that Microsoft may be doing some of the

same things they did before," Miller said. "Our concern is history

repeating itself with even more at stake - with the Internet at stake."

Miller, who was attending a meeting with other state attorneys general in

Vermont, said Microsoft's addition of new features to Windows XP is reminiscent

of the integration of its Internet Explorer browser into Windows 98. That move

was seen by the government as an attempt to crush competition, provoking the US

Justice Department and the attorneys general to file their sweeping antitrust

case against Microsoft in 1998.

The case is currently before a panel of the US Appeals Court in Washington,

DC. The appeals court is expected to strike down at least part of a harsh,

lower-court ruling that called for a Microsoft break-up to prevent further

antitrust violations. Antitrust experts believe the court probably will send the

remainder of the case back to a lower court judge and order hearings to

determine another remedy in the case.

If the court upholds part of the case, Miller said the Windows XP complaints

would be useful: "Then all this would be relevant in a remedy

(hearing)." The new complaints are being promoted by a group of Microsoft's

competitors, including Sun Microsystems Inc. However, it's unclear whether

antitrust officials in the new Bush administration will pursue the case as

aggressively, like those under former President Bill Clinton.

Antitrust experts believe Bush may be more open to settling with the company.

They say the states would find it difficult to pursue a new case against

Microsoft without the support of the Justice Department. Miller said the

attorneys general have no current plans to file a separate antitrust case based

on the Windows XP concerns.

"We're not saying we would never sue them, but we're saying presently

we're not considering a lawsuit," Miller said. Microsoft spokesman Jim

Cullinan said it was premature to discuss future developments in the case before

the appeals court issues its ruling.

But Cullinan defended the company's decision to add new features to Windows

XP. He reiterated the company's long-held view that such additions benefit

consumers and do not harm competition. "No third party is prevented from

running their applications on top of Windows," Cullinan said. "It's up

to the consumers to decide what they want to do with their PC."

(C) Reuters Limited 2001.