Swiss bar UBS from turning info over to Americans

The Swiss Federal Department of Justice and Police said it was illegal for UBS to do so and that, "if circumstances require, the FDJP will issue a corresponding order. The order prohibits UBS explicitly from handing over client information."

Switzerland and U.S. authorities have clashed over the demand for information that could show Americans attempting to dodge tax.

UBS has already paid a $780 million fine and disclosed hundreds of client names to prevent criminal charges.

And the Swiss government has agreed to redraft its tax treaties. See full story.

But the case has now moved to a Miami court, which is hearing the demand for the additional client information.

The U.S. has said that Swiss banking secrecy isn't an excuse for UBS to intentionally help Americans evade tax.

UBS has been hit by billions of dollars in net outflows on a combination of nervous investors unwilling to hold their money and the inability to bring in new cash.

Many analysts say the court battle is a prelude to a settlement. A Swiss newspaper estimated that UBS could pay as much as $4.6 billion to settle the dispute.

Swiss-listed UBS shares dropped 1.6% on Wednesday and have dropped 36% over the last 12 months.

Google launches OS - calls out Microsoft

Google Inc. is planning to hit Microsoft Corp. where it hurts by challenging the software giant's dominance in the world of computer operating systems.

The search firm said late Tuesday that it will begin offering its own operating system, called Chrome, in the second half of 2010.

While Google (GOOG, Fortune 500) already offers a host of products that compete with Microsoft (MSFT, Fortune 500), the new operating system is a direct challenge to Microsoft Windows, which is the most widely used operating system in the world.

"Google really can challenge Microsoft, because the proliferation of Web-based applications makes the operating system much less important," said Zeus Kerravala, analyst at Yankee Group. "As we pave the way towards real Web 2.0, there will be less of a real tie-in to Windows."

The new system will initially be targeted at netbooks, the company said. Netbooks are small, inexpensive laptop computers used mostly for Internet access.

Google said the new operating system will make use of open source programming, which allows third-party developers to design compatible add-ons. (Think of the applications created for the iPhone or Facebook.)

"We hear a lot from our users, and their message is clear: computers need to get better," Google said in a statement. Chrome is "our attempt to re-think what operating systems should be."

The new operating system comes after Google launched its Chrome Internet browser late last year.