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MSFT in iconic struggle
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August 9, 2001: 4:39 p.m. ET
Seeks more desktop icons, says Windows XP to hit stores before launch date
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NEW YORK (CNNfn) - Microsoft on Thursday confirmed reports that it will impose broader requirements on personal computer makers to promote its software and services on versions of the upcoming Windows XP operating system pre-installed on the new systems they ship.
The Redmond, Wash.-based software maker originally had intended the new operating system to be shipped with a "clean desktop," meaning there would be no icons visible when consumers first booted the machine.
Last month, signaling its willingness to settle its antitrust case with the federal government, Microsoft said it will give PC manufacturers more flexibility in configuring the desktops of their Windows XP-based systems, giving them the option to add icons for software and services. The company also said it would remove the "Start-menu" entry that provides access to its Internet Explorer Web browser.
Microsoft also said it would include Internet Explorer, which is included with its operating system software, in the "Add/Remove programs" feature in Windows XP, scheduled for release this fall.
But the Wall Street Journal reported in its Thursday edition that in cases where PC makers plan to include any icons on the desktop of Windows XP systems, Microsoft would require them to include icons to its MSN Internet service and its Media Player software, as well as an icon for the "recycle bin."
The recycle bin is just a utility for managing deleted files and has never been the subject of any controversy.
Click here for CNNfn's special report: Microsoft on trial
The Journal report also said the PC makers would be required to include icons for the Internet Explorer Web browser, but a company spokesman said there has been no change in the policy it set last month and they will still be allowed to remove it.
In fact, Microsoft already had disclosed the other requirements some time ago, according to company spokesman Dan Leach.
Microsoft, which earlier this week asked the United States Supreme Court to overturn a federal appeals court ruling that the software company is an illegal monopoly, has come under fire recently by several of its competitors, including CNNfn parent company AOL Time Warner, who claim the company's plans for Windows XP are further evidence of anticompetitive practices.
Windows XP integrates features such as instant messaging, streaming media and Internet authentication capabilities into the operating system.
It has drawn sharp criticism from several government officials, including Sen. Charles Schumer (D-N.Y.), who has urged the state attorneys general involved in the antitrust case to seek a court order blocking the release until the anticompetitive questions are addressed.
Microsoft's Leach said AOL has been engaging in the same kind of practices it is accusing his company of.
"We enable the computer makers to make choice those two desktop options," Leach said, referring to the AOL and MSN services.
"Now AOL has an exclusive deal with some computer makers that forces those computer makers to remove those MSN options from the boot up process on new PCs," Leach added. "We believe that is anti-consumer action by AOL."
John Buckley, a spokesman for AOL, acknowledged that the company has been seeking deals with PC makers for a greater presence on desktops to pitch its Internet service. However, he questioned Microsoft's claim that it already had disclosed the icon requirements to PC makers.
"Microsoft's message to consumers, PC makers and the government is: We own the desktop, and there's nothing you can do about it," Buckley said.
On Wednesday, Microsoft confirmed reports that some PCs with Windows XP will be available in stores ahead of the official scheduled Oct. 25 launch date. The company would not say how much sooner the systems would be available, or which specific brands they would be.
Observers have characterized Microsoft's recent legal moves as part of a broader strategy to prolong the court proceedings and delay any antitrust actions until after Windows XP is in the marketplace.
The company has asked the appeals court, which was expected to remand the case to the U.S. District Court in Washington this week for further review, to postpone any further proceedings pending the Supreme Court review.
Charles James, the Justice Department's new antitrust chief, was expected Thursday to ask the appeals court to deny Microsoft's request. 
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