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Gates admits stripped-down Windows possible
By Paul Abrahams in Washington
Published: April 24 2002 18:52 | Last Updated: April 24 2002 22:00
In what was probably his final day of testimony at the Microsoft antitrust remedy hearings Bill Gates (pictured), chairman and co-founder, admitted on Wednesday that it might be possible to create a stripped-down version of Windows for personal computers that use one of its existing products.
The admission was important because Mr Gates had previously argued that it was not feasible to create such a version of Windows, while maintaining the performance of the world's dominant PC operating system.
The nine litigating states want the software giant to provide a basic version of Windows, without applications such as the browser Internet Explorer and Windows Media Player, so that computer makers can install rivals' software.
Mr Gates admitted that Windows XP Embedded, a version of Windows used in products such as bank cash machines, allowed programmers to pick and chose which functions they wanted. However, Mr Gates pointed out that Windows XP Embedded required considerable testing after the options had been selected, and would not allow third-party software to be subsequently added.
Mr Gates has argued during three days of testimony that the states' proposals were cobbled together by its corporate rivals, and that the states have not thought through the proposals' feasibility or implications. He has used a number of examples in an attempt to show that reasonable business behaviour would be banned under the states' remedies, and that consumers would suffer. Throughout his testimony, Mr Gates remained calm and relaxed, in contrast to his performance during the original antitrust trial two years ago.
Through cross-examination, Steven Kuney, the states' lawyer, has tried to show that Microsoft is concerned that the remedies would create competition. He has also tried to demonstrate that Mr Gates' reading of the proposals are extreme and unreasonable.
Mr Gates argued that the proposals allowed rivals to strip out anything they wanted and still call it Windows. "What Windows is loses any meaning," claimed Mr Gates. He said the proposals were "fantasies" that gave his business rivals "everything they ever dreamed of".
Mr Gates also said that the discounts that Microsoft would have to offer under the proposals for stripped-down versions of Windows would lead to savings for computer makers worth hundreds of millions of dollars. Mr Gates said his group's sales to computer manufacturers were worth between $6bn-$7bn a year, and that the discounts could reach 25 per cent of those revenues.
The nine litigating states believe that the proposed settlement between the company and the nine other states and the Justice Department is too lax. Microsoft was found guilty of anti-competitive behaviour, a decision that was upheld at appeal. The current hearings, which may last until the middle of May, are to decide what conditions should be imposed on its future behaviour. Either side could appeal the judge's ruling.
source: http://news.ft.com/ft/gx.cgi/ftc?pa...ZUGORQ00C&tagid=ZZZNSJCX70C&subheading=global
