States May Cite Windows XP in Microsoft Case

June 21, 2001 - Filed at 5:39 p.m. ET - WASHINGTON (Reuters) - The state
attorneys general behind the Microsoft Corp. (MSFT.O) 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 company'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 said Microsoft's Windows XP strategy is "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 U.S. 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 U.S. Appeals Court in
Washington, D.C.

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. (SUNW.O). However, it's
unclear whether antitrust officials in the new Bush administration will
pursue the case as aggressively as 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."


Copyright 2001 Reuters Ltd.
http://www.nytimes.com/reuters/technology/tech-tech-microsoft-a.html?pagewan
ted=print

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