Four US consumer groups have sent a letter to state and federal prosecutors calling for extensive business restrictions against Microsoft.
The groups also said XP will cause "significant harm" to consumers.
In a joint statement, the Consumer Federation of America, Consumers Union, Media Access Project and US Public Interest Research Group, warned that Microsoft's new bundle of software and internet services will extend and deepen the company's illegal monopoly and cause significant harm to the nation's consumers.
"Without severe penalties for failing to comply with the consent decree, Microsoft, as evidenced by past behavior, has no incentive to obey the law," the groups wrote.
The organisations also asked for a special overseer to enforce the court's eventual decision.
"Financial penalties for non-compliance should be sufficiently large as to be meaningful to a company with billions of dollars of cash on hand, garnered through abuse of monopoly power," the letter stated.
The groups also wrote a report, Windows XP.Net, Microsoft's Expanding Monopoly, authored by CFA's director of research, Mark Cooper, and Christopher Murray of the Consumers Union. It details concerns over the upcoming Windows XP operating system.
In the report, the groups pointed out specific areas of harm that the courts found to have resulted from Microsoft's illegal practices and which, they said, will continue, if not worsen, under Windows XP/.Net.
The new products also raise privacy and commercial exploitation concerns through Passport. According to CFA's Cooper, "Microsoft is creating an entirely new basis of market power that would reside in the control of personal information."
According to the groups, Windows XP will drive up consumer costs and hamper innovation. The groups claimed XP/.Net bundle contains, among other things, proprietary programming languages and restrictive licensing terms.
Furthermore, the analysis said: "Microsoft has failed in its attempt to frame the case against it as 'anti-innovation'. Innovation is the crux of the case, but the real issue is whether innovation is driven by a vigorous competitive process or managed by a single, dominant firm that can choose to protect and promote its interest at the expense of consumers."
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