The judge in the Microsoft antitrust case is likely to delay issuing his conclusions of law, previously expected today, to allow the software maker and the US government more time to reach a settlement.

US District Court Judge Thomas Penfield Jackson had set today as the deadline for the parties concerned - Microsoft, the US Department of Justice and 19 US states - to reach a settlement and for the issuing of his conclusions of law in the case. The two sides have yet to agree on a settlement. If a settlement is reached, it would bring the curtain down on the case.

Media reports over the weekend suggested that the US government had already rejected Microsoft's 10-page settlement offer made late Friday as not going far enough. However, a report on today's Associated Press newswire suggested that the US government may still be amenable to Microsoft's settlement offer, possibly resulting in renewed settlement talks. There might be no further developments in the case until 10 days' time, according to unnamed sources in Associated Press report today.

A Dow Jones report today suggested that Microsoft might modify its deal to go further towards satisfying the US government's lawyers. Reportedly among the initial proposals in the software maker's settlement agreement were undertakings to alter Microsoft's business practices and open up the company's Windows operating system source code to third-party vendors.

In its settlement offer, Microsoft also reportedly offered to allow companies to ship Windows without its Web browser Internet Explorer (IE). The tying of IE to Windows lies at the heart of the US government's case against the software vendor, representing what the government lawyers allege is an abuse of Microsoft's monopoly. This effectively allowed the company to control the Net browser market to the detriment of competitors such as Netscape Communications, according to government lawyers.

Judge Jackson's findings of fact in the case released in November of last year went a long way towards supporting the US government's case. However, Jackson's findings at that time didn't rule on whether the software vendor had violated antitrust law, another one of the government's contentions. Once the judge's conclusions of law are issued, the stage will be set to consider remedies for the case, which could potentially involve the break-up of the software giant - a move Microsoft vehemently opposes.