A Microsoft spokesman said on Wednesday that the world's biggest software maker is testing an early version of the product with its own employees.
Microsoft would "soon" make a trial version, or product beta, available via its website, he added, but declined to provide a specific date.
Symantec shares fell 0.5 percent on Nasdaq and McAfee fell 1.3 percent on the New York Stock Exchange, while Microsoft was up 2.1 percent. The Nasdaq composite index was down 0.47 percent.
Microsoft has said that Morro will offer basic features for fighting a wide range of viruses, which would likely make it comparable to low-end consumer products from Symantec and McAfee that cost about $40 per year.
Their top-selling products are security suites that come with features including encryption, firewalls, password protection, parental controls and data backup.
Microsoft has said it will provide protection from several types of malicious software including viruses, spyware, rootkits and trojans.
Officials with Symantec and McAfee have said they do not see Morro as a threat.
"Microsoft's free product is basically a stripped down version of the OneCare product Microsoft pulled from the shelves," said Symantec Consumer division president Janice Chaffin. "A full Internet security suite is what consumers require today to stay fully protected."




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