Microsoft and AOL embark on instant messaging war

NEWS Microsoft and AOL are going head to head in a battle for the instant messaging market. The dispute began at the end of last week after Microsoft released software that opens up AOL's proprietary instant messaging software (http://www.silicon.com/a31699 ). In retaliation, AOL blocked non-AOL subscribers from talking to its own customers. But Microsoft came back with a statement, which reads: "We are disappointed with AOL's decision to react in this way. It is unfortunate that AOL chose to purposely disable functionality in our product which customers have been asking for. It is now clear that AOL is more focused on maintaining their proprietary hold on this service than on what is right for consumers." AOL has denied this, accusing the software giant of being underhand by launching the service at midnight and not contacting AOL beforehand. An AOL spokeswoman claimed the company is willing to work with Microsoft in the future. "We want interoperable systems, but that's only going to happen if AOL and Microsoft sit down together to work to connect the systems." Ovum analyst, Heather Stark, said AOL's blocking tactics could end up harming its own customers rather than Microsoft. "The fact that the systems aren't interoperable is madness. It's like mobile not interacting with fixed line," she said. Stark added: "AOL is ascending its position by not giving an interoperable service, but it depends on what AOL users want. If users are annoyed at not communicating outside the AOL playpen, then AOL is really shooting itself in the foot," she said. Ashim Pal, analyst at Meta Group, agreed. "We all know that technology breaks occasionally and there will be instances when you just cannot communicate with the people you want to, but to build in an actual blockage will be more detrimental to AOL. They could live to regret it."