Microsoft says it will not appeal a European Union court order to immediately implement antitrust sanctions, but it remained optimistic of eventually prevailing in its main case. The company employs 1,200 people in the Republic.

In December 2004 the software giant lost a bid to delay sanctions imposed by the EU's Commission, but it is continuing with a separate, main appeal against the Commission's decision that it abused the near monopoly of its Windows operating system.

"Microsoft has decided to forego its right to appeal the Court of First Instance's ... ruling of December 22, 2004," it said in a statement.

"Rather than seeking to suspend the Commission's remedies, Microsoft's focus now is on working constructively with the Commission on their full and prompt implementation.

"The sanctions compel the world's largest software maker to introduce a stripped-down version of its computer operating system without its Windows Media Player music and video software.

The Commission found Microsoft bundled Media Player with Windows to usurp rival programmes such as RealNetworks' RealPlayer and Apple Computer's QuickTime.

Microsoft said a European edition of Windows without Media Player would be available "in the coming weeks" and it had made specifications available to rival makers of server software - a second key Commission order.

But Microsoft said it would continue to appeal the Commission's landmark ruling from March 2004, when the EU's competition watchdog also levied a record €497 million fine.

"We remain very optimistic as we move forward in this process, and are encouraged that the December court order noted that a number of Microsoft's arguments could provide a basis for overturning the EC's decision," Microsoft stated.

A Commission spokesman had no comment on Microsoft's statement. - (Reuters)