[Am-info] Senator says MS deal full of loopholes

[Gene Gaines]

See article at http://zdnet.com.com/2100-1104-828597.html


Beginning of the article:


Senator says MS deal full of loopholes

Reuters
February 4, 2002, 5:50 AM PT

WASHINGTON--The chairman of a key Senate subcommittee said in a
legal filing that he has "serious concerns" about the proposed
settlement of the Microsoft antitrust case.

In a letter submitted as part of the proceedings, Sen. Herb Kohl,
chairman of the Senate Judiciary Committee's antitrust
subcommittee, said Microsoft's proposed settlement with the
Justice Department "contains so many loopholes, exceptions,
qualifications, and definitional limitations that Microsoft can
easily avoid its requirements."

The Jan. 28 letter from Kohl, a Democrat from Wisconsin, was
obtained by Reuters on Friday. It was among a raft of public
comments sent to the Justice Department's antitrust chief, Charles
James, as part of proceedings before U.S. District Judge Colleen
Kollar-Kotelly.

The settlement, reached in November, is designed to ensure that
Microsoft gives computer makers more freedom to feature rival
software on their machines and share parts of the inner workings
of the Windows operating system with other software makers.

The deal must still be endorsed by Kollar-Kotelly after the judge
reviews the comments and possibly holds a hearing on the matter.

But in his comments, Kohl said there are a number of potential
flaws in the settlement.

"I have serious concerns that these loopholes and qualifications
in the proposed settlement render it inadequate to accomplish its
task of remedying Microsoft's illegal conduct and restoring
competition in the computer software market," Kohl wrote to the
department.

Specifically, Kohl questioned provisions that he said could allow
Microsoft to continue denying rival software manufacturers access
to the Windows desktop as well as the operating system's inner
workings.

No ban on incentive payments
Nor is there anything in the agreement that would prevent
Microsoft from using incentive payments to get computer makers to
exclusively feature Microsoft software, Kohl said.

Kohl also questioned why the settlement does not ban Microsoft
from commingling computer code of add-on software with that of its
Windows operating system; why the restrictions don't automatically
extend for more than five years; and do not contain more "vigorous
enforcement mechanisms."

Microsoft spokesman Jim Desler responded by citing a long list of
Capitol Hill lawmakers who have expressed support for the
settlement.

"There is a groundswell of support in favor of settlement
reflected in thousands of comments from consumers, business
owners, computer developers as well as elected officials," Desler
said. "They recognize that this settlement places unprecedented
restrictions on the company and is a tough but appropriate way to
resolve this case."

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[There is more, worth the read.  ...Gene Gaines]