Microsoft works on answer to breakup proposal

WASHINGTON, MAY 7: Microsoft Corp is developing a response to the US government's breakup proposal that would put curbs on its business pr...

WASHINGTON, MAY 7: Microsoft Corp is developing a response to the US government8217;s breakup proposal that would put curbs on its business practices, including offering a version of the Windows operating system that quot;hidesquot; access to the software giant8217;s Internet browser, the Washington Post reported on Sunday.

The Post said under the Microsoft counter-proposal, computer makers also would be given flexibility to alter Windows software and Microsoft would refrain from entering into certain deals with computer makers that promote Microsoft products over rival products.

Microsoft8217;s plan is meant to show US District Court Judge Thomas Penfield Jackson that there is a remedy directly addressing the court8217;s verdict 8212; that Microsoft broke federal antitrust law 8212; without splitting the company in two as the federal government has proposed, the Post said quoting sources close to the company.

According to the Post, the Microsoft draft proposal would require the company to provide open, timely and complete access to the parts of the Windows operating system code that independent software makers use to write programmes for Windows. Microsoft would also propose a sliding-scale timetable for resolving the antitrust case, the newspaper reported.

And to answer the judge8217;s finding that Microsoft broke the law by tying its browser to the Windows operating system, the firm has proposed offering a version of Windows that hides access to the browser. Microsoft has argued that it cannot separate the browser from the software because the two products are fully integrated.

Microsoft was found guilty last month of abusing its power in the software industry 8212; Windows runs about 80 percent of all personal computers 8212; to harm rivals and strong-arm partners. Microsoft has insisted it broke no laws and vows to appeal.

The U.S. Justice Department and 17 states have proposed that Microsoft should be broken in two to curb its monopoly in computer operating systems. Under the breakup proposal, one company would sell the Windows operating system for personal computers and the other would handle other programmes such as word processing and Internet browsing software.

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Microsoft8217;s response to the government8217;s breakup proposal is due on Wednesday. Microsoft said last week it would file its objections to the proposal on schedule but added that it will ask for more time to prepare a detailed defence against a breakup.

The government will have until May 17 to answer Microsoft8217;s objections, and a court hearing is scheduled for May 24. If Microsoft8217;s request is granted, it could postpone a final remedy for months.