As executives at Microsoft count down the days to the release of
the Windows XP operating system, foes and competitors alike are
increasing their opposition to the company's plans to tightly
bundle applications and services with the software in an attempt to
delay the October launch.
In the latest twist, privacy groups in the US have announced their
intention to file a complaint with the US Federal Trade Commission
(FTC) alleging that Microsoft's Passport authentication service -
included with the new operating system - violates the FTC's unfair
and deceptive trade practices statute.
The groups intend to argue that Microsoft is effectively forcing
consumers into storing their personal information with the company
and are planning to seek an injunction to halt the release of
Windows XP and other services related to Passport.
Marc Rotenberg, the executive director of the Electronic Privacy
Information Center (EPIC), said, "We are recommending a series of
actions that we believe the FTC should take at this point. Aside
from clarifying its privacy policy for Passport, Microsoft should
revise the registration procedures for Windows XP and Hotmail."
EPIC's privacy complaint comes one day after the New York Senator
Charles Schumer, a Democrat, asked Congress to investigate
Microsoft's plans to include its media player and instant messaging
application with Windows XP. Schumer said he would also lobby to
secure an injunction to delay the 25 October release of Windows
XP.
Bill Gates's company is also under fire from a technology company
that has filed a patent infringement lawsuit against Microsoft
relating to technology used in Windows XP. The company alleges that
Microsoft's product-activation technology, as well as other
digital-rights management software, infringes its intellectual
property. The company is also seeking to delay the Windows XP
launch.
Microsoft responded to the latest criticisms by noting that it was
still carrying out negotiations with the US Department of Justice
and 18 state attorneys general in spite of still being embroiled in
the legal battle over the ongoing antitrust case. Rick Belluzzo,
Microsoft's president and chief operating officer, said, "The
discussions with the Justice Department are really central."
Belluzo added that Microsoft remained confident that its latest
concession to allow computer manufacturers to sell space on the
Windows desktop kept Microsoft on the right side of the law. "We
feel like it's a very inclusive product," he said.
The president of Junkbusters, Jason Catlett, whose company is among
those filing the latest claim with the FTC, said, "The latest
privacy concerns have more to do with consumer advocacy than
competitive issues. We're focusing mainly on Passport but it's
unclear how all these moving parts are going to fit together. There
are very significant competitive issues associated [with Windows
XP], but we're focused on the privacy."
Microsoft's Passport allows Internet users to use one password to
gain access to a variety of online services. One of the company's
Web services, and part of the company's Hailstorm services scheme,
Passport stores a user's personal information, including address
and payment information. Microsoft currently uses Passport with its
free e-mail service, Hotmail.
However, Microsoft's monopoly power raises privacy concerns
regarding how this gathered information is used as it links
Passport to an increasing number of services.
"Obviously there is a lot of visceral reaction to Microsoft seeking
to enhance its monopoly position in lots of different service areas
by having access to this personal information," said Virginia
Richard, an intellectual property attorney and partner at Winston
& Strawn in New York.
Along with Junkbusters, the Privacy Foundation and the EPIC, at
least seven additional privacy organisations are expected to back
the new complaint filed with the FTC, including the Center for
Media Education and the Media Access Project.
According to Catlett, the groups are pursuing concessions from
Microsoft that would prohibit the company from "stating or implying
that registration is required".
Noting that any investigation by the FTC could prove to be lengthy,
Richard said, "The likelihood of getting an injunction is very,
very difficult. You have to have a lot of evidence which is going
to show that your are likely to prevail. There are so many factual
issues that have to be reviewed that getting a preliminary
injunction is not likely."