The US Federal Government stuck by its proposal to split Microsoft in two on Friday, filing a revised remedies proposal that made only minor changes to its original plan.
US District Judge Thomas Penfield Jackson indicated earlier last week that he thought a three-way breakup of the software giant - which he found guilty of antitrust violations last month - would be more effective.
However, the Justice Department refiled its remedies proposal to divide Microsoft into two entities: one that builds the Windows operating system and one that oversees the rest of the company's offerings.
Jackson commended as an "excellent brief" a three-way plan drawn up by the Computer and Communications Industry Association and Software and Information Industry Association (CCIA-SIAA). The CCIA-SIAA argued that the Justice Department's original plan would merely create two monopolies where one had existed.
Rather, the trade group suggested cutting Microsoft into three companies - one with Windows, one with Internet Explorer, and one with applications - "because Microsoft did not have a browser monopoly when the trial began, but it acquired one in the meantime," the brief said.