Article 9 of 523
Two states warn Microsoft on monopolistic practices
Dorothee Moisan
 
06/21/2001
Agence France-Presse
(Copyright 2001)

WASHINGTON, June 21 (AFP) - With an appeals court ruling looming in the Microsoft antitrust case, two states involved in the case are warning the software giant against efforts to "maintain and extend" its monopoly through its newest products, including the new Windows XP.

"We do have serious concerns about Microsoft's conduct and practices in recent months," said a statement issued Wednesday by Iowa Attorney General Tom Miller and Connecticut Attorney General Richard Blumenthal.

The two states are among 19 joining in the federal government's antitrust case against Microsoft, which resulted in last year's court-ordered breakup, which is on hold pending appeal.

A ruling in the appeal could come as early as Friday.

The statement by the attorneys general criticized Microsoft's new Windows XP operating system to be launched in October and its "HailStorm" standard for delivering Internet services.

Microsoft was found in the earlier court case to have used its near-monopoly position with its Windows operating system to squeeze out competitors in other areas, and the two state officials say the firm "may be repeating its efforts to maintain and extend its monopoly more broadly to the Internet."

The statement said the officials have no plans for a second lawsuit, but noted, "We have found Microsoft's behavior to be very troubling."

It said that if the appeals court sends the case back to a lower court, the officials would bring up the new actions by Microsoft.

"We would never completely rule out a new suit, but our focus now is on the antitrust case that is already before the court," the statement said.

Microsoft spokesman Jim Cullinan had no comment about the court case or the statement by the attorneys general, but said concerns about Windows XP have been overblown by critics and competitors.

"We're disappointed that our competitors continue to spread misinformation about our products and we're looking forward to working with anyone that explains the benefits with Windows XP," he said.

"Windows XP is causing great excitement in the industry because it will unleash the potential and power of the PC. Microsoft develops our operating systems with features and functionality that consumers want and that exactly what we did with Windows XP."

Analysts said the harsh comments from the state officials suggest they plan to continue the legal battle against Microsoft even if the court-ordered breakup order is overturned.

"These two states feel like the decision is not going to be favorable to them and they are threatening to file a new lawsuit, and are indicating by this threat that they will take it to the Supreme Court," said Nicholas Economides , a New York University economist.

"The pressure they are trying to exert is not really on the court by on the Bush administration."

President George W. Bush's administration has made little comment on the Microsoft case, but analysts have suggested they may be willing to drop the case, which was brought by the Bill Clinton administration.

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