Microsoft accused of lagging on settlement

Microsoft Corp. faces a probe into a complaint by an anonymous company that it is in violation of terms of a 2001 antitrust settlement with the U.S. government, a Department of Justice attorney said during a court hearing Tuesday.

Aaron D. Hoag, a trial attorney for the Justice Department’s antitrust division, told a federal judge in Washington that an unnamed software maker complained that Microsoft was violating terms of the agreement. He declined to provide details, citing the need for confidentiality, and said he would report findings to the court.

U.S. District Judge Colleen Kollar-Kotelly expressed concern over delays Microsoft was having in making its software code available for licensees as part of the settlement. The judge said she would revisit in June whether the company was complying with the accord.

“I am concerned about ensuring that Microsoft doesn’t slack off in committing resources to this effort,” Kollar-Kotelly told Microsoft’s lawyers. “If I don’t see the results, then you didn’t put enough resources in.”

Microsoft, the world’s biggest software maker, settled with the federal government and 17 states in 2001 after it was found to have illegally defended its monopoly for Windows, the operating system that powers more than 90% of desktop computers worldwide.

The Redmond, Wash.-based company told the judge in February it needed until July 20 to fully document its software code for licensees, 52 days beyond the original deadline.

Kollar-Kotelly last May extended court supervision for Microsoft by two years, citing disappointing progress in helping software makers link with Windows-powered computers.

The judge said she might take other, unspecified measures if she determined that Microsoft was failing to live up to its agreements.

The judge set a June 26 status hearing for both sides to report to her.

Shares of Microsoft fell 72 cents, or 3%, on Tuesday to $26.72.