The Seoul High Court on Tuesday rejected an appeal by Microsoft to delay the implementation of penalties imposed on the software maker by the Korea Fair Trade Commission (KFTC).

The KFTC ruled last year that Microsoft 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 that ruling with the Seoul High Court and had asked the court to defer the 24 August deadline for compliance, buying itself at least as much time as the appeal lasts. The court ruled that the deadline stands irrespective of the appeal.

In response to the court's decision, Microsoft said that it plans to comply with the KFTC's order and offer new versions of Windows XP in South Korea. It also reaffirmed its intention to appeal the order.

"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.