Microsoft caves in as Kodak plays anti-competitive card

Microsoft has been forced to make changes to the online photo-finishing service being included with its Windows XP operating system.

Users will now be able to see third-party online photo-finishing services, rather than being steered towards the software developer's preferred online photo processors.

Microsoft had received complaints from Eastman Kodak, who said Microsoft had designed Windows XP unfairly by giving preference to its own software and links to Microsoft-associated online photo-finishing services.

In a statement Kodak said it had been notified by Microsoft that it intended to make some changes to its upcoming release of Windows XP. Microsoft will now change the presentation of choices upon a digital camera connection from a drop down menu to a visible list enabling consumers to view a number of third-party digital photography applications.

The software giant also agreed to clearly identify the scanner and camera wizard within the dialog box as a Microsoft digital photography function.

Phil Gerskovich, VP at Eastman Kodak, said in a statement: "The changes made to Windows XP are a positive move. Kodak is pleased that our EasyShare digital cameras and software will work well with Windows XP."

In addition, Kodak and Microsoft have collaborated to enable digital camera manufacturers who want to take advantage of the Picture Transfer Protocol (PTP) standard to do so.

Chris Jones, VP of Windows, said in a statement: "We are pleased that we've been able to incorporate Kodak's feedback and will continue our communications on ways to improve the digital photo experience."

Kodak plans to announce tomorrow the extension of the EasyShare system with three new digital cameras, the Kodak DX3215, DX3700 and DX3900 zoom digital cameras, all of which will be compatible with Windows XP.

The Kodak EasyShare system allows people to transfer pictures from camera to PC, and connect to the internet or their email.