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Microsoft XP injunction 'highly unlikely'

by Ian Lynch

07 Aug 2001

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US analysts believe that Microsoft's planned 25 October launch of the Windows XP operating system will go ahead without being challenged in court.

Fears that the launch may be delayed have been growing after heavyweight US politicians began condemning Microsoft's "anti-competitive" plans to bundle applications with its new OS.

However, industry watchers believe that political and legal factors mean supporters of an injunction are unlikely to succeed.

Pacific Crest Securities analyst Brendan Barnicle, a former lawyer, said the chance of having an injunction granted was "highly unlikely for a couple of different reasons."

"The standard for giving an injunction is very difficult. The courts are loath to give injunctions and instead favour monetary damages," Barnicle said.

He added that there were plenty of US politicians who wanted to see Windows XP launch, as it would provide a much-needed boost for chipmakers and PC vendors in the currently depressed market.

However, industry experts concede that the pro-injunction political faction has been gaining support.

New York senator and Judiciary Committee member Charles Schumer last month called for committee hearings to "demand that Windows XP allows users to choose their media player, messenger service and other applications instead of being forced to use Microsoft applications."

Schumer's objections have been taken up by Microsoft competitors including Real Networks and AOL Time Warner.

The companies argue that the software giant's ability to bundle its own applications with Windows XP will give it an unfair advantage over their rival instant messaging, media player and digital photos applications.

AOL and Microsoft are set to clash on instant messaging, media players, desktop icons and digital cameras, and could also end up in a battle to control US broadband internet connections.

Some analysts speculated that the injunction threat was being used by Microsoft's rivals as a commercial tactic.

"There exists a worry that AOL [or the states on the company's behalf] will ask for an injunction of Win XP," Lehman Brothers analyst Michael Stanek said.

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