US authorities step back from threat to break up Microsoft

By PETER GRIFFIN

SEATTLE - The United States Justice Department has decided not to seek the break-up of Microsoft, in a move it claims will streamline its anti-trust case against the software giant.

But the department says it will continue to pursue sanctions against Microsoft's illegal business practices.

The decision sparked speculation that concessions were being made to lure Microsoft into negotiations ahead of case hearings resuming in the next two weeks.

The Justice Department also said it would drop an unresolved claim that Microsoft illegally tied its web browser Internet Explorer to its Windows operating system because it would "only prolong proceedings and delay the imposition of relief that would benefit consumers".

At the unveiling of Microsoft's soon-to-be-released Tablet PC, group vice-president for business productivity Jeff Raikes, said: "It was an interesting, and for many, an exciting announcement that they [the department] wouldn't pursue break-up. We're committed to trying to settle the issues of the case."

Last month, the US Court of Appeal upheld a ruling that Microsoft had acted anti-competitively, but returned the case to the district court for further consideration of measures that should be imposed on Microsoft.

The Justice Department said it would seek remedies similar to interim sanctions handed down last year by District Court Judge Thomas Penfield Jackson.

Those included banning Microsoft from threatening or intimidating PC manufacturers who support rival software, and requiring the company to give software developers greater access to the Windows source code.

The remedies would also prevent Microsoft from bolting middleware - software that connects two otherwise separate applications - into Windows unless it is made removable from the operating system.

Microsoft would also have to license Windows under uniform terms to personal computer-makers.

* Peter Griffin visited Seattle as a guest of Microsoft.