MSFT Internet Explorer vs. NSCP Navigator Message Board

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Technology Stocks : MSFT Internet Explorer vs. NSCP Navigator

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To: Win Smith who wrote (24093)	6/22/2001 11:57:56 AM
From: Harvey Allen	Read Replies (1) of 24154

Editorial comment: Bundling battle Published: June 21 2001 18:59GMT \| Last Updated: June 21 2001 19:01GMT The latest dispute between Microsoft and AOL Time Warner could have important consequences for the way the internet will be used. US antitrust regulators should take a critical look. The pair recently broke up talks on putting America Online software in the next version of Windows, to be launched in the autumn. While there are reasons to be wary, AOL's warnings that Microsoft is trying to strengthen its grip on the internet should be seen in perspective. Microsoft's rivals fear that by bundling other software applications with its new Windows XP operating system, it will try to crush competition. XP will take bundling to a new level. It incorporates software for listening to music and watching video over the internet - a rival to Real-Networks - as well as an internet browser and an instant messaging system, which are challenges to AOL. Bundling is not in itself anti-competitive. But that does not mean that antitrust authorities should ignore the XP launch. They should be on the alert for any sign of the bullying of which Microsoft stood accused before, in its appeal against a US court judgment that it tried to squeeze competition out of the browser market. Even if the appeal goes Microsoft's way, it will still have overwhelming dominance of personal computer systems. It may well throw that weight around again. AOL's claim that Microsoft has tried to force it to drop Real-Networks' software - which Microsoft denies - should put regulators on guard. Another risk is that Microsoft may use its dominance to try to tie customers to closed technologies. By basing its internet software around XML - a common standard - Microsoft has laid some of those concerns to rest. But the XP launch will highlight one area where Microsoft should do more. Users of its instant messaging service, which will be bundled with the software for the first time, can communicate only with other Microsoft customers. Lack of interoperability is rife in instant messaging: AOL customers are also limited to communicating only with each other. This is unacceptable. Microsoft and AOL have both until now delayed opening up their messaging services. The launch of XP makes it essential that they act, if necessary with firmer regulatory prodding. Ultimately, the best way to ensure that Microsoft does not abuse its dominance would be to break it up into a number of competing Windows suppliers. That might be too drastic. So it is up to regulators to ensure that, undivided, the giant behaves fairly. They should condone bundling but not bullying. news.ft.com

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