BBC News Online: Business

Microsoft loses appeal on bundling

A federal appeals court has rejected a request by the company for a re-examination of the ruling that the software giant illegally bundled its Internet Explorer browser with Windows software in an effort to stunt competition.

The decision leaves the long-running anti-trust case, brought against Microsoft by the US Government and some states, on schedule to return to the US District Court late next week.

The court is set to decide on penalties to be imposed against Microsoft. But Microsoft may yet pursue its option of appealing to the Supreme Court in a last-ditch bid to win a reversal.

"We continue to review our options with regard to the Supreme Court," Microsoft spokesman Jim Desler said.

Impartiality question

Wednesday's ruling followed June's landmark judgement by the appeals court on complaints by Microsoft over the handling of the anti-trust case by Judge Thomas Penfield Jackson.

The appeals court, questioning Mr Penfield's impartiality, set aside his ruling that Microsoft should be broken up because of the firm's transgressions of trade law.

But the court upheld his finding that Microsoft had acted as a monopoly.

Wednesday's judgement failed to dampen investor sentiment, with Microsoft shares closing $0.98 up at $67.45.