BREAKING NEWS

Microsoft today lost its appeal against the antitrust decision and the resultant changes imposed on its business practices by the European Commission in 2004.

The European Court of First Instance, based in Luxembourg , backed the commission's decision to fine Microsoft €497 million (£345 million) as well as it forcing it to release a version of Windows without its Media Player software – despite this version being largely ignored by both OEMs and resellers. It, however, only partially upheld Microsoft's appeal over whether or not it should have to pay for EU monitoring of its business practices to ensure compliance.

"The commission did not err in assessing the gravity and duration of the infringement and did not err in setting the amount of the fine," the Court said in its 248-page judgement.

Today's judgement largely concerns Microsoft's refusal to disclose information to its rivals about how Windows communicates with networks and the subsequent €280.5 million (£195 million) additional fine the commission then levied upon the software maker – the total amount being the sum of a daily fine that the EU enforced until Microsoft complied.

Microsoft's decision to refuse to obey the ruling saw the EU's competition commissioner Neelie Kroes say in April: "we have never had an experience like this one." She was so concerned about the potential for destroying the commission's creditability on antitrust cases that she said a break-up or "structural remedy," might be appropriate.

Microsoft had argued that the commission's decision wasn't justified since it wasn't necessary for its rivals to access what it described as it "so-called network protocols" to connect their severs with its own.

The company had argued that the EU's 2004 decision would "limit our ability to innovate in Windows in the future, diminish the developer appeal of the Windows platform and increase our product development costs." It also said that the decision would unfairly allow its competitors to "better mimic the functionality of Microsoft's own products which could result in a reduction in sales."

The Court however found that Microsoft had failed to supply its competitors with enough information and dismissed its statement that they didn't need access to the protocols and APIs (application programming interfaces) in order to improve interoperability. The Court also said that Microsoft had failed to sufficiently show that supplying its competitors with this information would adversely impact upon its ability to compete.

On the bundling of Windows Media Player, the court upheld the commission's original stance, ruling that Microsoft had failed to adequately argue its case for bundling the software in with Windows to OEMs. It is currently unclear what further ramifications, if any, decision will have upon the future bundling of Windows Media Player with Microsoft's operating systems. Microsoft general counsel Brad Smith said the company will study the decision carefully. "If there are additional steps that we need to take in order to comply with it we will take them,'' Smith told reporters outside the courtroom.

"That decision set an important precedent in terms of the obligations of dominant companies to allow competition, in particular in high-tech industries," EU competition commissioner Neelie Kroes said in a statement. "The court ruling shows that the Commission was right to take its decision. Microsoft must now comply fully with its legal obligations to desist from engaging in anti-competitive conduct. The Commission will do its utmost to ensure that Microsoft complies swiftly," she said.

"This judgment confirms the objectivity and the credibility of the commission's competition policy,'' commission president Jose Barroso said in a statement. "This policy protects the European consumer interest and ensures fair competition between businesses in the internal market.'' The decision is likely to strengthen the commission's authority over other antitrust cases that it is currently presiding over including Intel, Rambus and Qualcomm – all who, the commission argues, dominate their respective markets or hold key patents that damage competition.

Both Microsoft and the commission will be able to appeal today's decision at the European Court of Justice. The commission said that it welcomed the ruling while also saying that it would issue a further and more detailed statement later on today.

Microsoft may still face another probe with the commission currently questioning the software company's rivals over whether or not they believe the company has used its dominance in the word processing and spreadsheet markets to thwart rivals through its refusal to open the formats Word and Excel use and to prevent interoperability.

Investigators probe Thai air disaster

17 hours ago

PHUKET, Thailand (AFP) — Crash investigators sifted through the charred debris of a Thai jet Monday as anguished relatives desperately sought news of loved ones after Thailand 's worst air disaster in a decade.

Officials said 89 people -- including up to 57 foreigners -- died when the plane crashed in driving rain on Sunday on the resort island of Phuket , slamming into a wooded embankment and breaking up in flames.

Transport Minister Thira Haocharoen said the two flight recorders, or black boxes, had been dug out of the wreckage. They will be sent to the United States for analysis, with results due within a week.

"The plane had been used for 12 years, and normally, any plane could surely serve flights for at least 15 years," he said.

"We have to admit that weather conditions were really bad, it is something beyond people's control."

As family members from Asia and Europe headed to Phuket, horrific witness accounts emerged of the doomed jet's final moments that left passengers trapped and burning alive.

"The people all around me were burning. Some on the floor and some standing, and they were on fire," said Parinyawich Chusaeng, a local artist who escaped with cuts and bruises.

"The plane just dropped really fast and then jerked back up. The right wing hit a tree and then the plane hit the ground." Canadian tourist Millie Furlong, 23, said a man sitting behind her and her boyfriend kicked open an emergency exit.

"You don't have time to think or be scared or anything. The flames came so quick, and there was smoke so you couldn't see anything," she said. Visibility was poor and there was heavy rain when the flight from Bangkok , operated by budget carrier One-Two-Go and carrying 123 passengers and seven crew, approached for landing.

Aviation officials and witnesses said the pilot received permission at the last moment to abort, but the plane smashed onto the runway.

Continued bad weather in Phuket hampered efforts to retrieve the remaining bodies from the plane, but by 3:30 pm (0830 GMT) airport officials announced that the debris had been cleared and the airport reopened. Major General Santhan Chayanont, in charge of the police operation at the crash site, told AFP that four bodies remained in the wreckage.

Prime Minister Surayud Chulanont was one of the first to fly into Phuket after the airport reopened. He tried to reassure survivors and relatives that a probe would be carried out quickly. "The investigation will be speedy. We are ready to provide flights for relatives or passengers who want to fly back to Bangkok ," he said. He earlier insisted Thailand 's air safety standards met international norms.

"We will wait for the result of investigations," he said. "I can confirm that our aviation standards meet international standards in every aspect." Santhan said the death toll remained at 89 -- 57 foreigners, 26 Thais and six not yet identified. "We still don't have the breakdown of nationalities," he said. Foreign embassies scrambled for information about their citizens. The US embassy in Bangkok confirmed four American tourists were killed and one survived, Australia reported one dead, while the British embassy said several Britons were dead without giving a specific figure.

The French foreign ministry said three citizens had died, one was seriously injured and six remained missing. As many as 15 of the 21 Iranians on board may have died, consular officer Safdar Shafiee said. Israel 's ambassador Yael Rubinstein told AFP that 10 Israelis were aboard, only two of whom had since been located in hospital.

Bangkok Hospital Phuket, which is treating those with the worst injuries, said 29 people remained in their care including seven Thais, six Iranians, two Irish, four Germans, three British, two Israelis and one each from Australia , Canada , Austria and France . One person was of unknown nationality. Among the dead was one of the pilots, a 56-year-old Indonesian.

General Sereepisut Taemeeyaves, the acting national police chief, said the identification process should be completed soon. "Most of the dead suffocated and their bodies have not changed much nor are they beyond recognition, unlike during the tsunami," he said, referring to the December 2004 disaster which killed 5,400 in Thailand .

"Some bodies may be badly burned, but we can check the DNA and all will be finished soon."