Calls for Microsoft investigation

Microsoft is still under investigation by the EU

A trade body representing some of Britain's largest companies has asked the UK government to investigate Microsoft's new software pricing policy, which could double costs over the next four years.

The Infrastructure Forum (tif), sent a letter on Friday to Patricia Hewitt, Secretary of State for Trade and Industry, asking the government to refer Microsoft to the Office of Fair Trading (OFT), a tif spokesman told Reuters on Sunday.

Tif represents the technology interests of companies like GlaxoSmithKline, BP, Shell and Marks & Spencer.

Microsoft's new pricing policy could cost tif's members an extra £880m over a typical four-year investment cycle, it said in a statement.

Microsoft is still under investigation by the EU for possible market abuses by Microsoft.

Moves to break up Microsoft ended in the US in September after Bush administration justice officials said they would not continue the action.

Double prices

The group said the new pricing structure will push up Microsoft licences by almost 100% by forcing them to buy new software each time they upgrade their systems.

The latest version of Microsoft's Windows operating system is due to be released next month.

"This money has not been budgeted for by organisations, so where will it be found...Does Microsoft realise the damaging impact its pricing policy could have on British business?" said David Roberts, chief executive of tif.

The group's 98 members collectively spend about £18bn on information technology every year.

Microsoft 'disappointed'

Microsoft says it has had a number of meetings with tif to discuss the changes being made, which it says are designed to simplify upgrades.

"We are surprised and disappointed that they have decided to take this action but will continue to talk to them about their concerns" the company said in a statement.

"We are very conscious that changes to our licensing programmes.... could mean higher licensing costs for about 20% of license purchases. We and our partners are working directly with customers to address their concerns, and help them understand their options" it added.

Microsoft also said that the UK government has not launched any investigation into the company¿s licensing policies.