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Department of Justice denies government breakup plan

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The Department of Justice has refuted a report in USA Today. The report says government lawyers have agreed to request that Microsoft be broken up as punishment for its anticompetitive behavior.

"It's inaccurate in several important respects and doesn't accurately represent our views," says Justice Department spokesperson Gina Talamona. She declined to comment further.

According to the USA Today report, government lawyers have in the past disagreed on which remedy to choose, but have agreed to request that Microsoft be split into separate companies - one for its Windows operating system and one for its other software, such as word processing products. The status of Microsoft's considerable Internet assets is not clear, the report says.

The involved parties are currently weighing settlement options, but Talamona would not comment on when the Justice Department would make its next announcement in regard to the case.

The Justice Department and the 19 states that have joined the lawsuit are accusing Microsoft of using a monopoly position in the market for PC operating systems to quash competition and move into other markets. Microsoft vehemently denies the accusation and says that competition is thriving.

In November, U.S. District Judge Thomas Penfield Jackson issued his "finding of facts" that found that Microsoft is a monopoly in the operating system market. Jackson's finding of facts is not a verdict, but is considered by legal experts to indicate how the judge is likely to rule in the final outcome of the case.

In December, the government issued a written brief arguing that Microsoft violated the Sherman Act, the basis of the nation's antitrust laws. Jackson has invited both sides to issue briefs and present oral arguments on how the law should be applied in the case, before he comes to a final verdict. Microsoft is due to file a counter brief on Jan. 17. Both sides will present their oral arguments before the judge on Feb. 22.

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