Antitrust Holdouts Want Windows Unbundled

WASHINGTON, D.C. -- The nine states that did not join the U.S. Department of Justice in settling the antitrust case with Microsoft plan to propose a set of remedies to the federal judge overseeing the case on Friday.

Attorneys general from these states are tentatively planning to hold a press conference midafternoon on Friday to discuss the proposed remedies, according to sources. The proposal must be filed with U.S. District Judge Colleen Kollar-Kotelly by 4:30 p.m. ET on Friday, the sources said.

While press reports have described different remedies under consideration, it appears that the states' proposal is still in flux. The discussion among the states regarding remedies is ongoing, said one source who asked for anonymity and who is an official at the attorney general's office of one of the suing states. Another source who also didn't want to be named said that the states on Thursday are asking for input from industry experts regarding the proposal, which could alter the draft remedies that already have been crafted.

According to published reports, lawyers representing attorneys general from the nine holdout states met on Wednesday to hammer out a remedy proposal that includes tougher enforcement sanctions. The states want to close what they consider loopholes in the DOJ's settlement agreement with Microsoft, which nine other states agreed to last month. The holdouts are California, Massachusetts, Connecticut, Iowa, Florida, Kansas, Minnesota, West Virginia, and Utah, plus the District of Columbia.

Groups Gripe

This remedy proposal would force Microsoft to offer to both computer makers and consumers the option of buying Windows without bundled applications, such as a browser or media player, according to reports in the New York Times.

According to a Reuters report, demanding a cheaper, stripped-down version of Windows is one of the possibilities the nine states are considering. Also under consideration is a requirement that Microsoft must include support for Sun Microsystems' Java programming language in Windows XP, the report said.

Microsoft will respond to the states' Friday filing by December 12.

Meanwhile, a collection of consumer advocate groups on Wednesday cheered the holdout states while denouncing the proposed settlement that Microsoft, the DOJ, and nine other states agreed to.

A similar criticism is at the core of more than 100 private antitrust lawsuits that may be settled soon. Microsoft has proposed a settlement in those cases as well, which involves donating about $1 billion in hardware and software to the nation's low-income schools. That settlement has been heavily criticized by Microsoft competitors, including Apple Computer, which argue it would only enhance Microsoft's monopoly power.