Microsoft Corp. is developing a response to the U.S. government´s breakup proposal that would put curbs on its business practices, including offering a version of the Windows operating system that "hides" access to the software giant´s Internet browser, the Washington Post reported on Sunday.

The Post said under the Microsoft (Nasdaq: MSFT) counterproposal, computer makers also would be given flexibility to alter Windows software and Microsoft would refrain from entering into certain deals with computer makers that promote Microsoft products over rival products.

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