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Monday, May 29, 2000

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Microsoft readies final response

WASHINGTON, MAY 28. Microsoft is preparing to mount one more legal challenge to a government call for its dismantling, setting the stage for a ruling on the company's fate - possibly later this week - from a federal judge.

The company is expected to respond by midweek to a Justice Department memorandum filed with the court on Friday. That memorandum reiterated a recommendation that Microsoft be split into two companies, one to develop the windows personal computer operating system, and the other to promote software applications.

Microsoft has already denounced the plan as extreme and has instead offered to accept limitations on its business practices such as to remedy the antitrust violations identified by a U.S. district court judge, Mr. Thomas Penfield Jackson.

But at a hearing last week, the judge appeared sympathetic to breaking up Microsoft, albeit into three rather than two parts. The third entity would specialise in Internet browsers.

Mr. David Boies, the government's lead attorney in the landmark case, replied that while such an option had been seriously considered, it had been rejected as being too complicated to implement.

Mr. Jackson also puzzled legal analysts with a decision to end debate on the proposed remedies, rejecting Microsoft's request for six months to prepare its case against dismantling.

Microsoft has vowed to appeal all aspects of the case, including the court's decision to curtail debate on remedies and its finding that the company, in an attempt to snuff out competition, had abused the monopoly in the operating systems sector which it enjoys thanks to windows.

- AFP

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