Windows XP launch prompts new Microsoft concerns

Microsoft yesterday launched its latest operating system in a record multimillion-pound blaze of publicity amid heightened speculation that the US software giant could face further regulatory scrutiny.

The group hopes that Windows XP, its first new operating system for six years, will revive flagging computer sales. Steve Ballmer, the chief executive, said the launch was "the biggest thing the company had done since Windows 95".

The software, which yesterday went on sale in 63 cities around the world, bundles together a larger number of applications than its predecessor, including a web browser, an e-mail program, an instant messenger and a digital photo editor. This has prompted calls for the European Commission to step up its investigation over Microsoft's alleged anti-trust activities.

Chris Huhne, a European Member of Parliament and the spokesman for the European Liberal group, yesterday urged big UK businesses to complain to the Commission about Windows XP, thereby allowing it to widen its investigation into the new operating system.

Mr Huhne said: "Windows XP is again bundling software for playing movies, MP3 files, audio and video. Many people will need a new PC to run the monster. To ensure that the licence is more carefully controlled, Microsoft has to activate a special code whenever hardware is upgraded or the software moved to a new PC. Microsoft's new tariff will also entail a big increase in business licensing costs."

The Commission has the power to fine Microsoft up to 10 per cent of its annual revenue, or $US2.5bn ($NZ 6 bn), if the company is found guilty of using Windows XP to extend its monopoly.

Microsoft has spent a record $606m on marketing Windows XP, in the hope that retail-shy US consumers will swallow the hype and upgrade their systems and their personal computers.

Bill Gates, Microsoft's co-founder and its chief software architect, last night hosted the biggest corporate party that New York has seen since the 11 September terror attacks. Other promotional gimmicks included a free Sting concert and a Madonna track to accompany the campaign. At the eleventh hour, Microsoft had to scrap its planned XP advertisements, which were to have depicted computer users flying into high-rise buildings under the slogan "Learn to fly".

This was changed to "Yes you can". Mr Ballmer, speaking at the UK launch of XP at London's Royal Festival Hall, said its trademark features were its reliability and compatibility.

- INDEPENDENT