Gates: Antitrust Penalties Would Prevent Timely Windows Security Updates

Microsoft

Gates was referring to a proposal that would require Microsoft to continue selling the previous version of Windows after it releases a new version. Gates said Microsoft wouldn't be allowed to recall or replace a version if a major security hole is found.

"I don't see anything in here that gives one a judgment call in the case of security or intellectual property violation," Gates said.

Steven Kuney, a lawyer for the states, said Gates really was afraid of giving consumers a choice of taking an older, cheaper version of Windows if they didn't want the new features. Microsoft aggressively markets new versions of Windows, using price changes, contract requirements and marketing to push consumers to buy the latest version.

"You're not interested in giving consumers choice in a variety of prices and a variety of features, because then people would not adopt the new software as quickly as you would like," Kuney said.

Gates said Microsoft also wouldn't be allowed to require that retailers label existing versions of Windows as an older version. Under questioning, Gates admitted the company doesn't do that now.

The appearance by the Microsoft chairman came a little over two years after a court concluded that his company operated as an illegal monopoly that thwarted competitors and hurt consumers.

The Justice Department and nine other states settled the case last fall and their deal with Microsoft is awaiting court approval. The nine states remaining in the case, along with the District of Columbia, want U.S. District Judge Colleen Kollar-Kotelly to impose tougher penalties than those in the settlement.

The penalties sought would include requiring Microsoft to share with competitors technical information and blueprints about how some of its most popular software works and to create a modular version of Windows that could incorporate other software makers' products.

Gates repeatedly sparred with Kuney over definitions, as Kuney tried to show that Gates had an unreasonable interpretation of the states' proposals.

In one instance, Gates took issue with Kuney's assertion that the states would only require that Microsoft continue to market the immediately previous version of Windows, rather than several. Kuney pointed to the section heading.

"In the states' decree, one thing that you should never assume is that the heading properly describes what's in the section," Gates quipped, drawing laughter from the courtroom and Kollar-Kotelly.

The judge appeared to give Kuney little latitude during his questioning. She sustained every objection made by Microsoft attorney Dan Webb, even appearing to contradict her earlier guidelines on what sort of testimony was allowed.

States that rejected the government's settlement with Microsoft and are continuing to pursue the antitrust case are Iowa, Utah, Massachusetts, Connecticut, California, Kansas, Florida, Minnesota and West Virginia, along with the District of Columbia.

Copyright © 2002 The Associated Press. All rights reserved. The information contained in the AP News report may not be published, broadcast, rewritten or redistributed without the prior written authority of The Associated Press.