KYRA PHILLIPS, CNN ANCHOR: Now let's turn it over to Washington, D.C., where our Jeanne Meserve is monitoring the arguments being heard right now in the Microsoft appeal -- Jeanne.</s>JEANNE MESERVE, CNN CORRESPONDENT: Here at the U.S. Court of Appeals for the District of Columbia, continuing its unprecedented and extraordinary consideration of the decision last June which would break Microsoft in two. Stephen Holley, a Microsoft attorney, said before the court this morning that the remedy was extreme. And he blamed in it part on bias against Microsoft by the judge in the case, Judge Thomas Penfield Jackson.</s>STEPHEN HOLLEY, SULLIVAN & CROMWELL: The most Draconian aspect of this decree, the breakup of Microsoft into two companies, was motivated by an illegitimate desire to punish Microsoft. The District Court expressly stated -- and I quote -- that he had "reluctantly come to the conclusion that a structural remedy has become imperative" because -- quote -- "Microsoft, as it is presently organized and led, is unwilling to accept the notion that it broke the law or to accede to an order amending its conduct" -- close quote.</s>MESERVE: The lawyer for the U.S. government, David Frederick, seemed to undergo the tougher questioning from the seven appellate judges hearing the case today. He was insistent that Microsoft, that -- excuse me, the district judge was correct in ruling that Microsoft was a monopoly, that it used its power to quash its competitors.</s>DAVID FREDERICK, U.S. JUSTICE DEPARTMENT: This case is about using two arms to strangle a nascent competitor, using the applications' arm to protect the operating-system-monopoly arm.</s>MESERVE: Arguments continue this afternoon. They will conclude this afternoon -- no decision expected in this case for months. As to what it will be, many experts expecting that parts of Judge Jackson's opinion will be sent back to the lower court to be reconsidered -- Kyra, back to you.</s>PHILLIPS: All right, Jeanne Meserve, thanks so much for the update there.
Microsoft Antitrust Appeal Enters Day Two