In the titanic struggle between Microsoft and the Justice Department, one of the software giant's chief defenses against the charge of monopoly-building is to argue that its lead in the operating-system market is vulnerable. New competitors, say the company, could challenge it at any time. That argument may seem laughable on the surface, given that neither Apple nor IBM was able to best Microsoft in the operating system wars. But there is a competitor on the horizon—and if internal Microsoft documents are to be believed, the software Goliath may be showing some nervousness.
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