Microsoft is using its monopoly power to hurt competitors in the market for personal digital appliances – specifically, the Palm computing platform – according to the Justice Department.
In arguments filed in support of the its proposal to split up the software giant, the government accused Microsoft chairman Bill Gates writing “an e-mail directing that Microsoft redesign its software to harm competitors” that make PDA’s.
In response, a Microsoft spokesman claimed the e-mail merely asked how Microsoft could make its handheld products better than its rival’s.
Earlier this month, Microsoft launched the Pocket PC handheld computer in a direct attempt to compete with the popular PalmPilot handheld computer.
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