As part of a regularly scheduled status report about Microsoft's compliance with its 2002 US antitrust settlement, the US Department of Justice (DOJ) and several US states say that the software giant is falling short of its requirements. Thus, the DOJ will extend regulatory oversight of the company for two more years, through 2009. Microsoft, the DOJ and states say, agrees that it hasn't complied fully and has agreed to the extension.

"An extension is necessary due to Microsoft’s difficulty in improving the technical documentation it provides to license," the DOJ wrote in a joint filing with the software giant. "Microsoft will rewrite significant portions of the documentation in an effort to substantially improve the overall quality of the documentation."

To address complaints about the technical information it must offer competitors as part of its settlement, Microsoft has put Bob Muglia, a senior company executive, in charge of the project. Bill Lockyer, the attorney general of California, says that while Microsoft has fallen short of complying with the antitrust settlement, "to its credit, the company has acknowledged that failure, agreed to go back to the drawing board, and accepted this extension."