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Report: Government lawyers favor Microsoft breakup

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Redmond, Wash.--U.S. government lawyers will suggest to Microsoft that it be split into two companies, USA Today reported Wednesday, without citing sources. The Feds ``appear to have reached a consensus'' that recommends splitting Microsoft into an operating company for its software business, and another for Windows, according to the newspaper. Whether Microsoft's Internet businesses would be folded into one of the companies or formed into a third is unclear. In prior published reports, Microsoft officials have said they may be open to a settlement, but would fight a breakup.
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