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By Ben King, 6 April 2001 16:37

NEWS The dispute has arisen over Passport, the authentication hub that will identify users and regulate access to many major Microsoft applications. Passport will be an essential component of Microsoft's .Net strategy for internet-enabled applications. Microsoft has always made enthusiastic noises about basing .Net on open standards and not restricting access to the system for users of software from other vendors. However, Gartner analyst David Smith reckons that Microsoft will use Passport as a way to lock in users and build revenue flows, which competitors are unlikely to accept without a fight. "There is a case to be made, and people will make it, that Microsoft is going to be leveraging the close ties between Passport and XP [the forthcoming version of Windows]," he told silicon.com. Bloor analyst Mat Hanrahan agrees. "It's an ease of use question. If access to Passport is built into the operating system, then it's much easier to use Passport rather than a competing system. That is what AOL will be looking into - the unfair use of an operating system monopoly." Passport is important, as it's likely to become a key revenue generator. "People will have to buy a subscription to [Passport]," said Gartner's Smith. "[Microsoft] will turn that point of control into a way of collecting revenue." The main loser will be AOL Time Warner, which runs a system similar to Passport to drive its instant messaging services. "AOL for one is not particularly happy about this, and they've started to raise the flag for it in Washington," said Smith. The situation is similar to the long-running anti-trust court case against Microsoft, where the company was accused of exploiting its operating systems monopoly to try and dominate other areas of business. However, Smith doubted that there would be another court case on a similar scale. "There could be action of some kind, but I don't think we will see action of that kind again." Passport already handles access to Hotmail, MSN and a range of other web-based services. The system will also be the gateway for the use of HailStorm, the raft of internet applications which Microsoft announced last month. AOL and Microsoft refused to comment on this story.