BERNARD SHAW, CNN ANCHOR: After the New York stock markets closed Wednesday, Microsoft responded to a federal judge's order by asking that the company not be split in two. CNN's Katharine Barrett is following the story at Microsoft headquarters -- Katharine.</s>KATHARINE BARRETT, CNN CORRESPONDENT: That's right, Bernie. One executive said to me late last night, "Separation is impossible." Microsoft does not want to consider breakup as an option. Some executives here, I must say, seem a little bit battle weary. One told me this morning, "After all, having your government suing you is not fun." But Microsoft is resolved to fight and win in court. Today was really the company's first chance since the judge's verdict last month to return fire. Today, it did file its response to the government's request for a breakup, and it also had its own plans for changing its business practices. Microsoft, as Bernie said, asked the judge to reject that government proposal to split the company in two. It wants the breakup proposal dismissed outright, saying that that penalty exceeds the violations found by the court. As to changing its ways, Microsoft says it would be willing to hide its Internet browser icon and allow PC makers or PC users to choose either Microsoft or another company's browser without restriction. Finally, Microsoft would allow PC makers to factory load non-Microsoft software platforms without imposing any licensing restrictions or penalties on them and let PC makers also customize desktop screens so that perhaps you might see something other than that blue cloud sky windows come up when you start your PC. Microsoft's chief executive called these reasonable and appropriate steps. That's the latest from here. I'm Katharine Barrett for CNN in Redmond, Washington.</s>SHAW: Thank you, Katharine.
Microsoft Asks Federal Judge to Reject Government Proposal of Breaking up Company