Originally published January 2 2006
South Korean authorities claim Microsoft abused its dominance
by Mike Adams, the Health Ranger, NaturalNews Editor
South Korea claims Microsoft has violated fair trade regulations. South Korea's Fair Trade Commission fined Microsoft $32 million and ordered it to offer a version of Windows without Windows Media Player and Instant Messenger software.
South Korea's anti-trust regulator has fined Microsoft 33 billion won (US$32 million) for violations of fair trade regulations and ordered the company to remedy alleged unfair trade practices.
In one version, Windows Media Player and Instant Messenger software has to be removed; the other version must include links to websites of Microsoft competitors.
In addition, the company must send CDs to existing users of Windows, allowing them to replace Media Player and Instant Messenger.
The FTC also ordered Microsoft to unbundle Windows Media Service from the Windows Server operating system.
"The Korea Fair Trade Commission found such tying practices liable because they constitute abuse of a market dominant position and unfair trade practices under monopoly regulations and the Fair Trade Act," Kang Chul-kyu, the commission's chairman, told reporters in Seoul.
That investigation was sparked by a complaint that South Korea's Daum Communications Corp. filed with the FTC in 2001 over its messaging software and separate antitrust charges brought by RealNetworks Inc. in 2004.
"In essence, the FTC is asking us to create two new versions of Windows that are not sold anywhere else in the world," said Oliver Roll, Microsoft's regional spokesman.
"That is bad for the consumer and bad for the Korean IT industry."
Microsoft has 180 days from the date it receives the ruling to make the changes demanded, said Yi Sok-joon, director of the FTC's Competition Policy Division, in a telephone interview.
Yi anticipated a tough legal battle ahead.
If the court does not grant one, then they have to do it," Yi said.
The US software giant is currently appealing an EU ruling that orders it to sell a version of Windows that does not include Media Player.
"The remedy announced by the FTC means it looks like we won't have to withdraw Windows from Korea," Roll said.
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