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Activists Urge Tough Limits for Microsoft

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From Times Wire Services

A coalition of consumer groups sent a letter to state and federal prosecutors Wednesday asking them to be tough with Microsoft Corp. in the four-year antitrust case, calling for extensive business restrictions and allowing individuals to sue the company.

The groups also wrote a report detailing concerns with the upcoming Windows XP operating system.

“We urge the attorneys general, who represent consumers as plaintiffs in the case, to seek a swift and sure end to what we believe to be illegal leveraging of illegally obtained monopolies for the PC operating system and Internet browser,” the letter states.

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The letter is signed by representatives of the Consumer Federation of America, Consumers Union, Media Access Project and the U.S. Public Interest Research Group.

Microsoft spokesman Jim Desler said, “Windows XP is a product that offers great benefits for consumers and is critically important to the PC industry.”

The groups argue that Windows XP will drive up consumer costs and hamper innovation. The activists want the government to consider fighting to split up the company if it fails to comply with a judge’s orders. Prosecutors already abandoned an effort to break the company in two, saying it would be too difficult and time-consuming to help competition.

On Friday, government prosecutors and Microsoft’s lawyers will meet in court to determine a schedule for new penalty hearings. Dan K. Webb, a former U.S. attorney in Chicago who defended Philip Morris Cos. against class-action lawsuits filed on behalf of smokers killed by illnesses blamed on tobacco, will join Microsoft’s trial team, Microsoft said Wednesday.

While Microsoft has said it would like to settle the case out of court, a joint filing with the government indicated the two sides are far apart on what would be appropriate remedies. The government has proposed hearings begin in early February after both sides gather new information about the software industry.

Microsoft shares fell $1.03 to close at $50.27 in Nasdaq trading.

Associated Press and Bloomberg News contributed to this report.

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