Microsoft is preparing a counterproposal to the government's breakup plan that would impose limits on its business practices.

Responding to U.S. District Judge Thomas Penfield Jackson's finding that the company broke federal antitrust law, Microsoft reportedly will offer to provide computer makers more flexibility to alter Windows software, and allow them to hide access to the Microsoft's Internet Explorer browser.

The Justice Department has asked that Microsoft be split into two companies: one that would sell computer operating systems, and another that would focus on software applications, Internet services and other Microsoft products.

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