Users may see few changes

More non-Microsoft items on PC desktop possible, experts say

11/02/2001

By DOUG BEDELL / The Dallas Morning News

If terms of Microsoft's settlement with the Department of Justice become reality, users of Windows operating systems will see few changes in the operation and construction of their computer desktops, experts said Thursday.

The only visible evidence for home and office personal computer users may be a proliferation of non-Microsoft desktop icons in machines shipped by manufacturers such as Dell, Sony and the new Hewlett-Packard/Compaq conglomerate.

"That would be the only near-term visual impact," said Rob Enderle, analyst for the Giga Information Group.

Microsoft had attempted to restrict manufacturers from adding ready access to services such as rival America Online inside its new Windows XP operating system. America Online, Kodak and other companies protested that the software maker was using its hefty, 90 percent share of the worldwide personal computer market to push its own products, such as the MSN Internet service and Microsoft "preferred" online photo processors.

Kodak's concerns were quelled when Microsoft agreed to change a dialog box affecting how Windows XP handles imaging devices, such as digital cameras and scanners.

Kodak agreed that its software would not automatically become the default for any digital camera attached to a PC and to publicly support Windows XP. America Online, meanwhile, quickly moved to obtain agreements from prominent PC manufacturers to include sign-up options inside XP-loaded machines.

Those disputes prompted some U.S. senators and state attorneys general to urge Department of Justice attorneys to seek an injunction preventing the release of the new XP operating system.

Should a settlement be reached, such desktop access issued would be left up to an oversight committee of unspecified composition, according to news reports.

"The long-term outcome of all this will hinge on that oversight committee," Mr. Enderle said. "That's a huge variable. It could be anything from a rubber stamp for Microsoft or it could effectively run the company. There's no way to know right now."

Under the settlement proposition, no changes would be necessary in Microsoft's broad .NET strategy to sell and control access to its emerging set of Web-based applications, such as the Passport authentication program opposed by some prominent privacy and consumer groups, several analysts said.

Under one version of the proposal, Microsoft would be free to continue weaving new features into its operating systems that directly compete with third-party software products.

Critics said Windows XP continues Microsoft's practice of developing features of its operating system that compete with independent companies that have no hope of survival without access to Windows desktops.

The new operating system, for example, contains for the first time a basic, built-in security firewall, which disenfranchises products such as Black Ice Defender and Norton Internet Security. And its Windows Media Player 8.0, critics said, is unfairly being incorporated into XP to the competitive disadvantage of companies such as RealNetworks.

Microsoft was found to have engaged in a pattern of anti-competitive conduct aimed at squeezing out competition in the nascent Internet browser market and keeping a chokehold on its monopoly of the personal computer operating system market. The company's move to tie its Internet browser to its operating system was a central point in the court's finding of improper, monopolistic practices.

But the highest appeals court to handle the case rejected claims that the simple act of tying software to Windows was illegal, and ordered a lower court to examine the issue using the more complicated standard of whether the "benefits of tying" outweighed harm to rivals.

"Remember, if it's something that looks like it might benefit users, the court has already been kind of favorable to that, anyway," said Mr. Enderle. "Sometimes that sort of bundle does benefit users."

Addressing such issues in any settlement may still leave some sticky problems for the computer industry and end users of non-Microsoft software, said Mr. Enderle. Just this week, the widespread implications of Microsoft behavior could be seen in an apparent snafu with the company's new MSN 7.0 Web portal.

The popular home page for information and resources opened with a redesign that would not function when viewed with alternative browsers, including Opera and AOL Time Warner's Netscape 6.1.

Microsoft redesigned the site to accommodate other browsers to address complaints from Opera, leaders of Web standards groups and anti-Microsoft advocacy groups, including the Project to Promote Competition and Innovation in the Digital Age (Procomp).

For them, the MSN 7.0 portal design portends even more problems if the oversight committee is not strong, or the sanctions for anti-competitive practices are not stringent.

"The latest actions by Microsoft should demonstrate the true character of Microsoft and its breathtaking disregard for software users, and should underscore the need for a tough, comprehensive remedy," said Mike Pettit, Procomp president, in a letter to the Justice Department.

"Microsoft," he wrote, "should not be left free to take this kind of unilateral action against rival browsers while it delays imposition of permanent and binding constraints on its conduct."