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States express Microsoft antitrust concerns
Still not convinced software giant complying

By Reuters

Published: Monday 27 October 2003

State attorneys general told a federal judge on Friday that they are not sure yet whether Microsoft is complying with an antitrust settlement, even though the huge software company had made its Windows software code available to rivals.

Five computer companies, most recently wireless networking company UTStarcom, have licensed computer code to make their server software compatible with Microsoft's Windows operating system. Microsoft said that was evidence it was complying with the landmark antitrust settlement. Other licensees include software maker SCO Group and network equipment maker Cisco Systems.

Microsoft was required to offer the server software licences to rivals under "reasonable and non-discriminatory" terms as part of its settlement with the US Justice Department and state attorneys general last year. Rivals had complained Microsoft's licence terms were unreasonable.

The attorneys general told US District Judge Colleen Kollar-Kotelly they would need more time to determine whether Microsoft was offering licences on favourable terms.

Kathleen Foote, a California senior assistant attorney general, said: "We would have liked to say by now whether the remedy had achieved the purpose of opening up the market we had hoped for. We certainly hope to get at least some clarity on these subjects in the next few months."

Microsoft attorney Rick Rule said the fact the company was making its communications protocols available should be enough. Rivals may decide to build their own communications protocols instead of licensing them from Microsoft, he added.

Rule said: "For all of these companies, these are pretty important decisions about how they're going to build their products. Many folks out in the marketplace are going to choose other paths."

Kollar-Kotelly said she was pleased the two sides were working together and not asking her to impose a remedy. She set the next oversight hearing for 23 January 2004.