BBC News Online: Business

Microsoft attacks break-up plan

"The government's proposed final judgement is defective in numerous respects, making the document vague and ambiguous," Microsoft argued.

The US Department of Justice argues that Microsoft should be split into two parts to ensure greater competition.

It was the company's final submission to Judge Thomas Penfold Jackson before he rules on the software giant's fate. He has already said Microsoft acted illegally as a monopoly.

Microsoft has said it will appeal against any unfavourable decision - a move which could extend the landmark legal battle for months or years.

Support for Microsoft

In its submission on Wednesday, Microsoft offered testimony from top executives of other companies, including computer makers Compaq and film-makers Dreamworks, in support of its view that a break-up would harm the US economy.

Under the government's plan, Microsoft would be split up into one company selling the Windows operating system, and another handling everything else including the Microsoft Internet Explorer browser at the heart of the anti-trust complaint.

The US Government charged, and the court accepted, that Microsoft forced its customers to adopt its own browser by discounts and pressure on computer makers, to the detriment of rival software maker Netscape.

During the hearing on remedies last week, the judge explored possible methods of breaking up the firm, including a three-way split. In the end, he instead asked the US Government to provide him a "clean copy" of its proposed remedy.

Judge Penfield Jackson's final ruling is now imminent.

Definitions

In its objections to the government plan, Microsoft said there "must be a definition of the term 'Internet browser'".

"At the moment there is no indication of what the government is referring to," it added.

Microsoft also said the plan to break up the company should be called a "divestiture," and not a "reorganisation."

The company had asked the judge for six months to call more witnesses from elsewhere in the computer industry to testify on the negative effects it believes would follow. But the judge gave Microsoft just two days.

With the final ruling imminent, Microsoft has cancelled plans to launch new software which would provide internet access for any kind of computing device, including cell phones and hand-held personal organisers.