Dillon plays down impact in Republic

The managing director of Microsoft's European operations centre in Dublin, Mr Kevin Dillon, has played down the implications of the US ruling for Microsoft's 1,500-strong Irish workforce.

He predicted it would be several years before the decision to split the company in two could have any real impact here.

"The appeal process is likely to take a minimum of one year, and then the court order indicates even if a split were the final conclusion, there's a further year before action can be taken. That's a minimum of two years, so it's very difficult to predict so far down the line the impact on the Irish operation," Mr Dillon said.

Referring to the short-term rulings in the judgment, Mr Dillon said that while he felt they were "incorrect", neither would affect operations in Ireland. The rulings preclude Microsoft from entering exclusive licensing agreements with PC makers and compel it to make its software source code available.

Mr Dillon added that he didn't expect Microsoft's Irish operations to have any difficulty finding and retaining new staff.

"It is true new and prospective employees ask more questions about our views on the case, but we do our best to keep everyone informed. Our staff turnover rates are lower than the industry average, at about 7.5 per cent. The employees obviously watch the share price very carefully but understand in the long run it's the results that count."

Microsoft's operations in the Republic include the company's manufacturing, distribution and logistics hub for Europe, the Middle East and Africa.