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CNET News.com: Government expected to stick with two-way split

May 26, 2000, 02:12 (3 Talkback[s])
(Other stories by Joe Wilcox)

"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 a source."

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