"The government is not expected to accept a federal judge's
invitation to propose breaking Microsoft into three companies,
sources close to the case said. During a remedy hearing
yesterday, U.S. District Judge Thomas Penfield Jackson grilled the
government about a third-party proposal that would split Microsoft
into three rather than two companies, as the government had
proposed last month."
"Jackson appeared concerned a two-way split would create two
monopolies--one in operating systems and another in software
applications--that would not spur enough competition."
"But sources familiar with the government's case said such a
proposal is unlikely. "If Jackson was really serious about the
three-way proposal, he would have given more time. You can expect
tweaking (with the government's proposal) and not much more," said