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Music Feature in Microsoft Software a Violation, Says Antitrust Status Report

Posted on: Saturday, 18 October 2003, 06:00 CDT

Oct. 18--The U.S. Department of Justice and state prosecutors yesterday told a judge they are "concerned" about a music-buying feature in Microsoft's Windows XP software that may violate the company's 2001 antitrust settlement.

Also revealed in the government's filing are concerns that the settlement's centerpiece -- forcing Microsoft to share technical details of Windows -- may not be working as planned.

The filing is a quarterly status report to U.S. District Judge Colleen Kollar-Kotelly, who is scheduled to meet with the parties in person next week.

It's a routine filing but the concerns raised by the Justice Department come at a crucial time. Microsoft is negotiating a separate antitrust case with the European Union, where it has argued that the U.S. settlement adequately restores competition to the software market.

The issue surrounding the music-buying feature relates to a settlement requirement that Microsoft enable XP users to use browsers other than Microsoft's Internet Explorer.

But even if users have installed a competing browser, Explorer automatically launches when users click on XP's "Shop for Music Online" feature.

Microsoft contends it's doing nothing wrong and won't change the feature. It says a settlement provision allows Windows to continue using Explorer for some built-in functions.

"We believe the use of Internet Explorer by the 'Shop for Music' link in Windows is consistent with the design rules established by the consent decree," spokeswoman Stacy Drake said.

Both sides have "conferred extensively on this issue," the filing said. If they cannot resolve the issue "the parties may seek assistance from the court," it said.

As for the sharing of Windows' technical details, the filing said the settlement may have to be changed to be sure that it's remedying the effects of Microsoft's past anticompetitive practices.

Only eight companies are participating in a program forcing Microsoft to share protocols for making network software communicate with Windows.

The government noted a "lack of licensees" in the filing, but Microsoft contends the eight participants show the program is working.

Recent licensees include Kirkland-based LapLink Software, Cisco, Tandberg Television and The SCO Group, a Utah company that has riled Microsoft competitors by asserting ownership of code in the freely shared Linux software.

Prosecutors forced Microsoft to lower the licensing fees and ease restrictions on participants earlier this year.

Drake said the company is "continually modifying the program and committed to working with the government to ensure its success," she said.

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(c) 2003, The Seattle Times. Distributed by Knight Ridder/Tribune Business News.

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