Microsoft agrees to EC's Windows changes

Agreement includes technical changes, wording on packaging

By Scarlet Pruitt

March 29, 2005 12:00 PM ET

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IDG News Service - Microsoft Corp. has agreed to make all of the main changes to the version of Windows without its Media Player requested by the European Commission, the company said today.
The changes to the newly titled Windows XP Home Edition N software include removing all references from retail packages and supporting documents that certain programs won't work with the Media Player-free version of Windows, and development of a software package that will allow consumers to restore the Windows Media functionality if they choose.
The software maker sent a letter to the commission today accepting the changes as part of its ongoing negotiations to comply with antitrust sanctions imposed on it last year, a company spokesman said. The commission implements antitrust laws on behalf of the European Union member states.
The commission ruled in May that Microsoft had abused its dominance in the desktop software market to gain advantage in other related markets, such as media players. As part of antitrust sanctions, the regulator ordered Microsoft to distribute a version of Windows in Europe without Media Player.
Yesterday, Microsoft agreed to name the free version without Media Player the "Windows XP Home Edition N" at the commission's request, after its chosen name, "Windows XP Reduced Media Edition," was rejected by the regulator as unappealing (see story).
Microsoft has now agreed to make additional changes to appease the commission. In addition to removing warnings that some programs won't work with the "N" edition, and the creation of a new software package to restore Media Player functionality, Microsoft also agreed to put back certain registry files related to its media player, the spokesman said.
"Having finally received the commission's feedback on these issues after two months we are working as fast as possible to implement all of these changes," the spokesman said.
Microsoft was also fined $662 million and ordered to open up interfaces for its workgroup server software as part of the antitrust rulings. It is still negotiating with the commission over licensing terms of the server protocols, which have also come under scrutiny.

Reprinted with permission from

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