Concerned about a possible backlash, federal and state antitrust officials are not planning to ask a court to block Microsoft Corp's new operating system, Windows XP, US government sources said.
Although the strategy could change, attorneys at the Justice Department and for 18 states pressing antitrust charges against Microsoft fear they would be criticised for hurting the ailing computer industry, which is counting on Windows XP to boost PC sales later this year, the sources said.
US government attorneys remain concerned about Windows XP but, rather than try to block its release, they plan to raise the issue in coming hearings about how to punish Microsoft for its illegal behaviour, according to the sources. Alternatively, the government could insist that Windows XP be addressed in any voluntary settlement.
The question of whether to seek a court order against Windows XP has been hotly debated since the June 28th ruling by the US Court of Appeals in Washington, which found Microsoft had violated the Sherman Antitrust Act by abusing its power to maintain a monopoly over computer operating systems.
Windows XP is scheduled to be shipped to computer manufacturers later this month and released to the public on October 25th. Some computer makers, including Compaq Computer, said they might begin selling the software as early as September. That timetable means the government would have to move quickly if it wanted to stop Windows XP before its release.
Microsoft rivals, including AOL Time Warner and Eastman Kodak, are worried that Microsoft would be able to leverage its operating-system monopoly into other markets by bundling Windows XP with new features, including instant messaging, a music and video player, and digital photography software. A similar bundling of Microsoft's Internet Explorer Web browser with the operating system was the core of the government's original antitrust suit.
Last month, Democratic Senator Charles E. Schumer of New York - the home state of AOL Time Warner and Kodak - called on the Justice Department and the states to take legal steps to block Windows XP unless Microsoft made changes, which the company had steadfastly refused to do.
But after weighing the issues, government antitrust attorneys are worried that seeking a short-term court order to block Windows XP would distract them from the more important goal of reaching a long-term resolution to the case, sources said.
Instead, the government plans to raise the issue in the remedy phase of the new trial, even if that means modifications can be made only to future versions of the product.
"There's a consensus that Windows XP should be dealt with in the final negotiation," said a government source familiar with the case, speaking on the condition of anonymity. "We don't want to do anything that might appear to be anti-competitive."
A spokesman for Iowa Attorney General Mr Tom Miller said the states had not made a final decision about whether to take any action regarding the release of Windows XP.
A Justice Department spokeswoman declined to comment.
The government would face significant legal hurdles if it attempted to block the shipment of Windows XP.
