Judge Rebuffs Google's Request To Extend Oversight of Microsoft

A U.S. District Court judge yesterday declined to address a petition by Google that asked the government to extend its antitrust oversight of Microsoft.

Instead, Judge Colleen Kollar-Kotelly said she was satisfied that Microsoft had settled a dispute by agreeing to alter Windows Vista so users could more easily access alternative search programs offered by rivals like Google. The judge said any additional concerns about Microsoft's adherence to a 2002 consent decree settling an antitrust case should go to federal and state regulators.

"As far as I'm concerned, [the states and the Justice Department] stand in the shoes of consumers," she said in a routine quarterly hearing on Microsoft's compliance with the decree. "Google is not a party in this suit."

The hearing comes as the rivalry between the two giants heats up on the regulatory front. Google filed a brief with the district court on Monday, asking for an extension of provisions in Microsoft's consent decree past their November expiration. Microsoft, in turn, has argued that Google's proposed acquisition of DoubleClick poses an antitrust risk in the online advertising market.

The Google-Microsoft dispute over Vista stems from a search feature built into the software that scans a computer's hard drive for activity so users can find files. Google, which also offers a desktop search, argued that Microsoft sets its program as the default in Vista while slowing down those of competitors. Microsoft agreed last week to alter Vista to allow other programs to run as the default in its upgrade, which is expected to be released before the end of the year.

Rebecca Arbogast, an analyst with Stifel Nicolas, said she was not surprised that the judge didn't specifically address the Google matter.

"These judges are not in the business of indefinite oversight over how some company is doing business," Arbogast said. "It's going to take more than Google coming in and complaining" for the judge to extend the decree past November.

Google said it had not expected a decision on the consent decree extension as part of yesterday's hearing.

"As a result of our raising concerns about Vista desktop search, the Department of Justice and the states secured remedies from Microsoft that will provide consumers more choices than existed before," said Alan B. Davidson, head of Google's Washington office.

Brad Smith, general counsel for Microsoft, said the company was pleased with the amicable resolution over the search-feature dispute. "We worked through very precise details relating to specific changes we would make," Smith said. "That made it possible to bridge what otherwise might have been a series of disagreements."