Negotiations between Microsoft and AOL break down
Talks over whether America Online will be included in Microsoft's upcoming Windows XP operating system have broken down.
Negotiations were called off this week after the two could not agree to new terms, spokesman Jim Cullinan said on Friday. Windows XP, the latest version of Microsoft's operating system, is scheduled to be in stores in October.
America Online spokesman Jim Whitney says AOL, a division of AOL Time Warner, had no comment.
Mr Cullinan says Microsoft would still provide AOL with the technical information it needs to make the company's internet software compatible with XP if users install it themselves.
"We're disappointed that talks broke down, but AOL remains a very important ISV and we are working very hard to ensure the AOL client will work great on top of Windows XP," Mr Cullinan says.
A source close to the negotiations says sticking points included making AOL's instant messaging program compatible with Microsoft's or tweaking AOL's system to support Microsoft's Windows Media Player format in addition to RealNetworks' RealPlayer format.
But another person close to the discussions says Microsoft and AOL never discussed instant messaging compatibility.
He says Microsoft had asked for exclusive use of its Windows Media Player format with AOL, which AOL would not agree to.
