Microsoft sign a deal with EU

Microsoft has reached agreement with European Union anti-trust regulators to allow European users a choice of web browsers. The accord ends 10 years of dispute between the two sides. Over that time, the EU imposed fines totalling 1. 68 bn euros ($2.44 bn, £1.5 bn). The European Commission said Microsoft's legally binding agreement ended the dispute and averted a possible fine for the company. The Commission's concern was that the US computer giant may have broken competition rules by bundling its Internet Explorer web browser with its dominant Windows operating system. " This is a victory for the future of the web " Jon von Tetzchner, chief executive, Opera Competition Commissioner Neelie Kroes said: " Millions of European consumers will benefit from this decision by having a free choice about which web browser they use." Microsoft general counsel Brad Smith said the company was "embarking on a path that will require significant change". "Nevertheless, we believe that these are important steps that resolve these competition law concerns," he added. Better browsers Ms Kroes said Microsoft's pledge was an incentive for web browser companies to innovate and offer better browsers in the future. Internet Explorer is used by more than half of global internet users, with Mozilla's Firefox at about 32 % and Norway's Opera with 2 %. It was the minnow operator, Opera, that brought the latest complaint about browsers in 2007. THE STORY SO FAR Dec 1998 - Sun Microsystems lodges first complaint about Microsoft dominance Feb 2000 - Commission launches investigation after claims Microsoft was not sharing information about its Media Player March 2004 - Commission fines Microsoft and orders it to share information Dec 2007 - New investigation after Opera complains about browsers Feb 2008 - Commission raises 2004 fine Jan 2009 - Commission accuses Microsoft of illegally tying Internet Explorer to Windows July 2009 - Microsoft agrees to browser choice screen proposal Dec 2009 - Commission wraps up investigation The company's chief executive, Jon von Tetzchner, agreed the move would boost innovation. "This is a victory for the future of the web. This decision is also a celebration of open web standards, as these shared guidelines are the necessary ingredients for innovation." Nevertheless, we believe that these are important steps that resolve these competition law concerns." Microsoft's commitments on web browsers will be valid in the European Economic Area for five years. Dominant bundle In preliminary findings released in January, the European Commission said Microsoft "may have infringed" a European Treaty by "abusing its dominant market position" by bundling the company's web browser with its Windows PC operating system. In July, Microsoft proposed a consumer choice screen that allowed users to pick from a number of different browsers. The Commission then asked Microsoft to improve the choice screen, which it has now done. In 2004 , the EU fined Microsoft and forced it to offer a version of its Windows operating system without Microsoft's own media player. The company was also told to give rivals more information about how Windows works, so they could make their own software integrate better with the operating system. Microsoft appealed against the decision but lost its case in 2007. Outstanding concerns There remain, though, unresolved areas of dispute between the two parties. Although here, too, progress has been made. Microsoft has submitted an improved version of undertakings it made in July on interoperability. These are designed to address EU concerns about improving the compatibility of third-party products with several Microsoft ones, such as Windows and Microsoft Office. The Commission welcomed this move too, but said it would monitor its impact on the market. Any findings would be taken into account in a pending anti-trust investigation on interoperability, it said.

Intel's business policy accused

Intel, the world's biggest maker of computer chips, is being sued by a US competition authority. The Federal Trade Commission (FTC) has accused the company of using its market dominance to squash competitors and prevent innovation. It said Intel had deliberately tried to "hamstring" its smaller competitors. Intel said the FTC's case was "misguided". The FTC's move comes a month after the New York attorney general launched a similar lawsuit. In that case, New York attorney general Andrew Cuomo accuses Intel of using "illegal threats" to dominate microchip sales. " This is clearly a good day for [Intel's rival] Advanced Micro Devices, there's no question about it " Peter Kenny, Knight Equity Markets Last month Intel also reached a $1.25 bn (£770 m) settlement with rival Advanced Micro Devices to end an anti-competition legal dispute between the two firms. 'Hamper competition' Shares in AMD rose 5.2 % on news of this latest action, while Intel dropped 0.7 %. "This is clearly a good day for Advanced Micro Devices, there's no question about it," said analyst Peter Kenny of Knight Equity Markets. Intel is also appealing against a record $1.45 bn anti-competition fine from European regulators. The FTC said it is asking for an order that would bar Intel from using "threats, bundled prices, or other offers to encourage exclusive deals, hamper competition, or unfairly manipulate the prices of its" chips. It accuses Intel of using both threats and rewards to keep some of the biggest computer makers from buying other companies' chips or marketing computers that carried them. The complaint names Dell, Hewlett-Packard and IBM as Intel's targets.

US interest rate remain same

The Federal Reserve has decided to keep US interest rates on hold at between 0 % and 0.25 %, as had been widely expected. Despite continuing signs that the US economy is recovering, the central bank reiterated that rates would stay at the low level for an " extended period". The Fed's hand was strengthened by official data showing earlier on Wednesday that US inflation remains under control. Inflation rose by just 0.4 % in November, as had also been predicted. With inflation continuing to be low, the Fed is not under pressure to increase interest rates as a means to tackle any inflationary pressure. Instead, it can keep the cost of borrowing low to help the US economy continue to rebound. Separate official US figures on Wednesday indicated that the economic recovery remains on track. The Commerce Department said the current account deficit rose 10.3 % to $108 bn (£66 bn) between July and September, as demand for overseas goods among US consumers increased. Meanwhile, new home construction for November grew by 8.9 % to an annual rate of 574 ,000 units. The most recent official figures showed that the US economy grew at an annual pace of 2.8 % during the third quarter, down from an initial estimate of a 3.5 % expansion.

Scotland's airline collapsed

An operation is under way to fly back to the UK thousands of people left stranded after Flyglobespan, Scotland's biggest airline, collapsed. Its parent company, Globespan, entered administration on Wednesday, with all flights cancelled and 800 jobs going. About 4 ,500 passengers are stranded - mostly in Spain, Portugal, Cyprus and Egypt. The Civil Aviation Authority will be repatriating about 1 , 100. Last year the airline carried more than 1.5 m passengers, on 12 ,000 flights. It operated mainly from Edinburgh, Glasgow Prestwick and Aberdeen, but also flew transatlantic services from other UK cities including Gatwick and Belfast. It also flew charter flights from Manchester to Egypt. " I urge all affected passengers to identify themselves as former Flyglobespan customers to alternative carriers in order to ensure they benefit from these special repatriation fares Paul Clark Transport minister Administrators PricewaterhouseCoopers said Edinburgh-based Globespan was contacting all the passengers booked with or travelling with the airline. One senior cabin crew member for Flyglobespan told the BBC he had not yet been contacted by the company. Tom Maguire from Prestwick added: "I'm completely devastated by this news the week before Christmas. I feel totally let down. "There is nothing on the staff website, we're just hearing things through Facebook. No one has told me that I don't have a job." Passenger Audrey Duncan from Edinburgh had been due to fly with the airline later. Not protected She said: "I have had no contact from the airline as yet which I find disappointing. I'm sure there are staff who would be able to send an e-mail to customers like me in a very short space of time." Flyglobespan went into administration after attempts to conclude a financing deal for the airline with Jersey-based Halcyon Investments broke down. In a statement, the administrators said the Civil Aviation Authority (CAA) would be responsible for the repatriation of about 1 ,100 people who were on holidays booked as part of a Globespan package holiday. However, a further 3 ,400 people are overseas and are not protected after booking directly through flyglobespan.com. Customers who booked Flyglobespan flights directly via the Flyglobespan website or the call centre will not get a refund on the cost of their flight but the Department of Transport said they may qualify for a reduced rate repatriation fare. FLYGLOBESPAN FACTS 11 operational aircraft - two on order 1.5 m passengers carried in 2008 12 ,000 flights each year 4 ,500 passengers currently abroad More than 100 ,000 have travel plans booked Travellers booked on cancelled flights have been advised not to go to the airport and contact the Globespan helpline, or check its website, for information. Meanwhile, easyJet and Ryanair have offered those passengers affected special "rescue" fares to allow them to return home where their routes overlap with those of Flyglobespan. And Thomas Cook said it had arranged additional capacity for its flights out of Glasgow Airport. Transport minister Paul Clark said: "I urge all affected passengers to identify themselves as former Flyglobespan customers to alternative carriers in order to ensure they benefit from these special repatriation fares." There are also 27 ,000 people who have future flights booked through the Air Travel Organisers' Licensing (Atol) insurance scheme, and around 90 , 000 people who have forward bookings but have no Atol protection. They may be protected under their own personal travel insurance or through their credit card transaction. It is understood Flyglobespan also has a contract with the Ministry of Defence (MoD) to transport troops to and from destinations such as the Falklands. 'Sad day' Edinburgh airport's managing director, Gordon Dewar, said: "This is a sad day for the Scottish aviation industry. "However, our immediate attention must turn to the thousands of passengers who were due to fly with the airline over the coming months. "We are already holding urgent discussions with a number of other airlines and are hopeful of replacing much of the capacity that has been lost from Flyglobespan going into administration." A Scottish government spokesman said news of the airline's collapse was "extremely disappointing", adding that "customers booked with Globespan either returning from holidays or about to travel can seek further advice through the Civil Aviation Authority's website". Earlier this year, Flyglobespan, which was set up in 2002 , announced it had made an operating profit of £1.2 m following a loss of £19 m the previous year. However, earlier this year, it pulled its services out of the Durham Tees Valley airport, blaming the worsening economic climate.