LIAN PEK, CNN ANCHOR: In the U.S. overnight a seven-judge panel overturned a decision to break Microsoft in two, and asked a lower court judge to reconsider penalties against the software giant. CNN's Bruce Francis explains the latest ruling, which hands both victories and defeats for both parties.</s>BRUCE FRANCIS, CNN CORRESPONDENT (voice-over): Microsoft avoids the corporate death sentence for now, but many of the key findings against the software giant remain. The appeals court said that Microsoft is a monopoly and that the company illegally tried to protect its position. The appeals court agreed that Microsoft made illegal deals with Apple Computer and Internet service providers, licensing deals with computer manufacturers and certain relationships with independent software developers also broke the law.</s>JOHN ASHCROFT, ATTORNEY GENERAL: I'm pleased to say that the court unanimously found that Microsoft engaged in unlawful conduct to maintain its dominant position in the computer operating systems. This is a significant victory.</s>FRANCIS: But the court also singled out a few issues that were clearly victories for Microsoft, namely that evidence did not support the conclusion that the market for browsers was monopolized. Microsoft did not engage in predatory pricing by giving away the browser. And the appeals court disagreed with the claim that Microsoft illegally tied the browser to windows and remanded that claim, or sent it back to a lower court. The court emphatically agreed with Microsoft that Judge Jackson should have held specific hearings on remedies. And the court found that Jackson's public comments on the case seriously tainted the proceedings.</s>BILL GATES, CHAIRMAN, MICROSOFT: We feel strongly the cloud of breakup is not over us now because of the reversal that we've got here. And most importantly, we can proceed with the new products that we've been working on.
Seven-Judge Panel Overturns Landmark Microsoft Breakup Ruling