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Washington Post: Microsoft Drafts Reply to Breakup Proposal

May 07, 2000, 16:54 (4 Talkback[s])
(Other stories by James V. Grimaldi)

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"Microsoft Corp. is drafting a counterproposal to the government's breakup plan that involves limits on its business practices, such as giving computer makers more flexibility to alter Windows software and offering versions of Windows without access to the company's Internet browser, people familiar with the plan said yesterday."

"The company's proposal is meant to show U.S. District Judge Thomas Penfield Jackson that there is a remedy directly addressing the court's verdict--that Microsoft broke federal antitrust law--without going to the 'radical' extent of breaking the company in two, sources close to the company said."

"The Justice Department and 17 states last month urged the judge to break Microsoft into two companies: one that would sell personal computer operating systems, the brains that run PCs; and another company that would focus on selling software applications, Internet services and other Microsoft products. Two other states are seeking tough limits on Microsoft's conduct, but for now oppose a breakup."

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