DoJ gauges options on MS trial result

Senior Department of Justice (DoJ) officials are reportedly approaching investment banks requesting an analysis on how best to break up Microsoft should the software giant lose its anti-trust trial.

According to US reports, the officials asked at least two banks for logical ways to split the company to identify which parts of it could be made into separate businesses, and to conduct a study on how the stock market might react.

But both banking firms, which requested anonymity, declined the request because they were worried about the impact of appearing to side with the DoJ.

A spokeswoman for the DoJ confirmed the US government had approached experts to assist it in considering remedy options should it win the case, but added that no individual or firm had been retained to analyse the market impact of any of the available options.

The Justice Department and 19 states filed lawsuits last year, alleging that Microsoft engaged in predatory conduct to maintain a monopoly in the desktop operating system market and to illegally extend its control into the internet software sector.

Microsoft has always denied the charges, claiming that its practices are good for consumers, but did not perform well in its defence. As a result, most legal experts expect the vendor to be found to have violated anti-trust laws. The possible outcome has sparked debate that the government could introduce controls such as splitting the company up into smaller operations if Microsoft was to lose the case.

Other options being considered by the DoJ include forcing Microsoft to make the source code and pricing structure for Windows publicly available.