The Seoul High Court yesterday rejected Microsoft's appeal to delay penalties imposed by the Korea Fair Trade Commission (KFTC).

The KFTC ruled last year that Microsoft had violated the country's fair trade regulations, and ordered the company to pay a fine of 33 billion Korean won ($35.4 million) fine. The court also compelled Microsoft to offer two versions of its Windows XP operating system in the country, one without Windows Media Player and Windows Messenger and another that includes links to websites offering rival software.

Microsoft appealed the ruling and asked the court to defer the 24 August deadline for compliance. The court ruled that the deadline stands irrespective of the appeal. In response, Microsoft promised to comply with the KFTC's order and offer new versions of Windows XP in South Korea.

"While Microsoft believes that the KFTC’s order will hinder technological innovation in Korea, it remains committed to continuing its business in Korea and to providing innovative technology to Korean customers," the company said in a statement.

The decision against Microsoft comes in the same week that the EU ruled that Microsoft had failed to comply with its anti-trust decision over the same issues, and paved the way for fines of up to 2 million euros a day against the software giant.