As expected, Judge Thomas Penfield Jackson handed down his ruling that will break industry giant Microsoft into two separate companies. Judge Jackson issued his final ruling today, and mandated that the company be divided into a PC operating systems company, and a software company that will encompass the Office suite of applications and the Internet Explorer Web browser.

Within four months, Microsoft must submit a divestiture plan, though Microsoft is sure to file appeals that will take years to work through. The split will likely be put off until the appeals process has been exhausted.

Also decided, Microsoft must adhere to a set of conduct restrictions that would take effect 90 days from the ruling (June 7, 2000), but Microsoft has vowed to ask for an injunction to the ruling.

Among the specifics of Judge Jackson's ruling:

• Microsoft must license Windows to PC makers under uniform prices and terms in adherance to a schedule set by the government.
• Microsoft is barred from interfering with the way PC makers set up start-up screens, the Windows desktop, preferences, and Internet connection wizards.
• The company must disclose technical information about its operating systems to independent hardware and software companies.
• Microsoft must not degrade the performance of middleware made by other companies.
• Microsoft must not bind middleware products, like its Web browsers, to its Windows operating system unless the access can be removed by PC makers and end-users.