States Air Concerns Over Windows XP

On the eve of a federal appeals court ruling on the government’s landmark antitrust case against Microsoft Corp., state attorneys general voiced new criticism of the company for bundling features in Windows that give the software giant an unfair competitive advantage.

Connecticut Atty. Gen. Richard Blumenthal said Thursday that Windows XP, a new version of Microsoft’s flagship computer operating system scheduled to debut this fall, “raises many of the deeply troubling concerns that prompted” the suit against the company.

That lawsuit, brought by the U.S. Justice Department and 19 states three years ago, resulted in a lower court decision to split Microsoft in two. Microsoft appealed, and an appeals court ruling is expected soon.

Even before the outcome of the current case, Microsoft’s rivals such as America Online have been pressing for further legal action. But some analysts believe the Bush administration may not want to continue the legal crusade begun under President Clinton, and the states may not have the resources to go it alone.

Nevertheless, Blumenthal and Iowa Atty. Gen. Tom Miller, in a joint statement issued Wednesday, criticized Microsoft for bundling enhanced instant messaging, a streaming media player and other features. Critics say the software enhancements give Microsoft greater control over consumers’ Internet use and a competitive advantage over rivals, whose competing Internet software must be acquired separately by consumers.

The company “may be repeating its efforts to maintain and extend its monopoly,” the two state officials said.

The furor over Windows XP, which Microsoft Chairman Bill Gates calls the most significant product launch for Microsoft since Windows 95, has sparked an intense lobbying campaign between Microsoft and its critics.

Microsoft President Steve Ballmer was in Washington this week visiting government officials, although a Microsoft spokeswoman said the appeals case was not among items he discussed with Vice President Dick Cheney and others.

Meanwhile, AOL executives have huddled with government lawyers about their Windows XP concerns. And ProComp, an organization backed by Microsoft rivals Sun Microsystems Inc. and Oracle Corp., expressed their worries this week to a gathering in Vermont of the nation’s state attorneys general.

“Microsoft wants competitors to innovate--well, you can’t innovate when the company you are competing with controls the [product] pipeline,” said Mitchell S. Pettit, ProComp’s president.

Microsoft spokesman Jim Cullinan said the software giant would defend its freedom to innovate.

“We are disappointed that our competitors spend more money on lobbying government regulators than on improving their products,” Cullinan said.

The criticism of Microsoft by the state attorneys general came after a report Wednesday that the 19 states involved in the original suit were considering bringing a new action targeted at Windows XP.

The states dismissed the report, saying they “have no current plans for a second lawsuit.”