The reason why ...
AOL Joins Microsoft In a Reply to Spam
By David A. Vise
Washington Post Staff Writer
Friday, February 21, 2003; Page E01
Are you angry about spam?
So are America Online Inc. and Microsoft Corp. These arch rivals, which compete ferociously for Internet subscribers, say illicit commercial e-mail has so overwhelmed their efforts to stop it that they are joining forces to press for tough federal legislation to stymie the spammers.
Spam is up fivefold over the past 18 months, leaving the electronic mailboxes of Internet users jammed with billions of unwanted commercial e-mails. AOL blocks 780 million pieces of junk e-mail daily, or 100 million more e-mails than it delivers.
"I get spam too, and I am as fed up with it as all of our members are," AOL chief executive Jonathan F. Miller said yesterday. "As a member and a parent, I, too, have become outraged by the tide of spam that's drowning the legitimate e-mail I want to get."
The problem is growing rapidly, Microsoft officials said, because the cost to spammers is so low that sending bulk spam can be profitable even if only 1 in 100,000 recipients responds to an electronic sales pitch for lower interest rates or increased sexual drive.
Since spam-blocking technology isn't getting the job done, the titans of technology are turning to the federal government for help.
AOL and Microsoft's MSN, the two biggest Internet access services, want stiff jail terms for spammers who commit fraud by misrepresenting themselves online; the power to seek injunctions against the theft and use of proprietary e-mail addresses; and large fines to put spammers out of business. They are also attempting to craft legislation narrowly enough that it will block deceptive spammers without treading on First Amendment rights.
"We believe it is going to take a combination of technology tools, industry initiatives, litigation and legislation," said Larry Grothaus, lead product manager for MSN. "One part of the mix is going to be industry cooperation. People are starting to put their heads together."
Last fall, AOL and Microsoft each unveiled software touted as a major breakthrough in the fight against spam. But now they concede they are losing the battle, a position supported by industry data.
Internet users receive an average of 110 unwanted e-mails weekly, according to a soon-to-be-published study by Forrester Research Inc. While 39 percent of online consumers use spam filters to avoid unwanted e-mail, only one-third of them are satisfied with the results.
"These things don't quite work as well as billed," said Chris Charron, group director at Forrester Research.
Dulles-based AOL said it blocks an average of 22 unwanted e-mails per day for each subscriber.
Keeping customers happy by fighting spam is essential for America Online and Microsoft, which charge monthly fees for Internet access. AOL garners billions of dollars annually from subscribers. When disgruntled customers depart for smaller Internet services to avoid spam, AOL's revenue shrinks.
America Online officials agree that legislation, and partnering with Microsoft on the issue, makes sense. Executives of both companies met earlier this week to discuss the issue at an industry forum in California.
"One of the best ways to fight spam is not to do it as competitors but as allies," said AOL spokesman Nicholas Graham. "We are all in this together."
AOL also took the issue directly to its 35 million subscribers yesterday, posting a message to members on its welcome screen.
"We are outraged that our kids are being exposed to vile porn spam online," the message said. "We are fed up with spam and we HATE it as much as you do! . . . Spammers are finding new, fraudulent and illegal ways to get spam into your inbox and evade AOL's anti-spam screens. . . . At AOL, we believe the most egregious spammers shouldn't be staring at computer screens, they should be staring at jail bars."
Unlike America Online and Microsoft, officials at EarthLink Inc., the nation's third-biggest Internet access service, said they are not pushing for legislation. "We are skeptical that will have any impact," said Matt Cobb, EarthLink's senior director of product management.
Instead, Cobb said EarthLink is attempting to build on the relative success of its "Spaminator" filter, which the company claims blocks most unwanted e-mail. In April, EarthLink will release "SpamBlocker," which it predicts will block an even greater amount of junk e-mail for subscribers who use it.
Subscribers to EarthLink, which has 5 million users, and Yahoo Inc., which has a few million paying subscribers, receive less spam than subscribers to America Online and MSN, industry experts said, because they are part of smaller networks. With the biggest bases of users in the world, AOL and Microsoft provide the richest target for unsavory online marketers.
In addition to its MSN service, which has 9 million subscribers, Microsoft offers free e-mail through Hotmail, which has more than 100 million accounts. Microsoft officials said they are fighting spammers who steal Hotmail addresses through litigation, while employing sophisticated anti-spam software for MSN users that increases in effectiveness the more it is used.
In addition to seeking new federal laws, AOL officials are actively pursuing new legislation to fight spam at the state level. They regard Virginia's anti-spam, anti-fraud statute as the kind of legislation they would like to see adopted nationwide.
While AOL thanked subscribers for helping it fight spam by reporting it through software released last fall, Microsoft posted an essay on its Web site, which it dubbed "Spiking the Spammers." The technology giant argued that by stealing e-mail addresses and using electronic networks free, the marketers purveying spam are abusing the system.
"Spam is big, several billion messages every day and still growing," the essay said. "Spam thrives despite the annoyance, in part because spammers face virtually no economic constraints. Sending e-mail is so cheap that spammers can turn a profit even if only one in 100,000 recipients responds.
"Complaining to the authorities can help. The Federal Trade Commission takes legal action against senders of deceptive or fraudulent bulk e-mail. . . . We are intensifying our efforts to work with other [Internet service providers] in fighting spam, and working with government to enforce current laws against it. But new, strong laws are needed. At a minimum, senders should not be allowed to misrepresent their identity, falsify the subject of a message, or use automated means to gather e-mail addresses without the owners' consent."
The Redmond, Wash.-based company, which fought off antitrust charges from a Clinton-era Justice Department that accused it of throwing its weight around improperly, now wants Uncle Sam by its side. "To help keep intruders at bay," Microsoft said, "we must all do our part."
