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Microsoft to Appeal Antitrust Ruling in S.Korea

Posted on: Saturday, 25 February 2006, 09:00 CST

Microsoft to appeal antitrust ruling in S.Korea

SEOUL, Feb. 24 (Xinhua) -- Microsoft Corp. said Friday it will appeal to the South Korean regulator against a ruling that it violated the nation's fair trade laws by bundling software in its Windows operating system.

The reaction came immediately after South Korea's Fair Trade Commission (FTC) gave Microsoft the deadline of Aug. 24 to comply with the landmark ruling, which orders the U.S. software giant to unbundle some of its products from Windows.

"We will appeal this decision within 30 days and may request a stay," Microsoft said in a statement. However, the company did not give a specific date of the appeal.

"We continue to believe that the integration of media player and instant messaging capabilities...and has benefited millions of South Korean consumers," the statement said.

Earlier in the day, the South Korean Yonhap News Agency reported the South Korean antitrust regulator sent documents on the punitive sanctions to Microsoft, which was ruled to have violated the nation 's fair trade laws by tieing its instant messenger, audio, and video software to Windows.

The FTC gave its ruling in December 2005 after four-year investigation over Microsoft. The ruling not only demanded Microsoft to pay 33 billion won (33.5 million U.S. dollars) fines for its violations of fair trade rules, but also requested the software giant to sail unbundled Windows in the next 10 years in the South Korean market.

The FTC started investigation on Microsoft in September 2001, when a local Internet portal Daum Communications Corp. lodged a complaint with the commission over Microsoft's bundling of its instant messenger software with some versions of its dominant Windows operating system.

Daum offers its own chatting software -- Daum Messenger -- in local market. Daum claimed Microsoft's bundling sale of MSN Messenger, one of the most popular instant messenger software in the world, in South Korean market has hurt its business in such fields.

The FTC's investigation was widened after U.S. software company RealNetworks Inc. filed a complaint with the commission in November 2004, condemning Microsoft for tying its audio and video software with Windows, allowing the company to have an unfair advantage over rival music and video software companies.

Both Daum and RealNetworks filed suits against Microsoft to local courts, accusing its violation of trade fair rules in South Korea.

However, the FTC's ruling came about one month after Microsoft, Daum and RealNetworks reached out-of-court settlements over the antitrust dispute. Microsoft promised to give a total of 30 million dollars to Daum, and 761 million dollars to RealNetworks.

Source: Xinhua News Agency - CEIS

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