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News > Companies
Microsoft looks to delay
May 7, 2000: 6:53 p.m. ET

To propose business practice changes instead of breakup in antitrust case
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NEW YORK (CNNfn) - Microsoft Corp. will ask for a trial delay of a few weeks to half a year when it submits its own reply Wednesday to the government's proposed remedy in the antitrust case against the software maker, a knowledgeable source has told CNNfn.

The Justice Department on April 28 submitted proposals to District Court Judge Thomas Penfield Jackson that would break Microsoft into two companies: one for the Windows operating systems, and the other for Microsoft Office, Microsoft's Internet businesses and other properties.

But according to the source Microsoft may propose establishing a "mechanism" for judging competitor's complaints that Microsoft does not  reveal all the inner secrets of the Windows operating system. The company may propose allowing computer makers more freedom in deciding which software and partners to feature on the Windows desktop.  And it will request a range of trial delays before Judge Jackson enters his final judgment.

graphicThe company is believed ready to move to that stage in a few weeks to a month or two if the remedy is limited to changes in Microsoft's business practices.  But it would want six months to gather evidence for counter arguments if the Judge does consider splitting the company in two. 

The Attorney's General from the states joined in the federal suit won't comment for the record.  One said "I would imagine the Judge will want more from the company than they seem to be saying they'll do."

Microsoft has until Wednesday to file its plan with Jackson. Once he has that, and a government reply due May 17, the judge will conduct a hearing on May 24.

Microsoft spokesman Mark Murray said Sunday that "we're still developing our proposals."

Jackson has ordered the company "to provide our proposal for what we would see as a reasonable and appropriate remedy for the violations the court found, recognizing that Microsoft disagrees with many of the court's findings and plans to appeal," Murray said.

Microsoft will also propose that it be required to provide software developers information they need to build products in a timely way and that it be prohibited from signing restrictive agreements that induce companies to promote the products of Microsoft over its competitors. And it will consider charging standard prices for the licensing of its Windows operating system.   Back to top

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