Microsoft's Chief Lawyer Meets with South Korea's Anti-Trust Watchdog Amid Ongoing Investigation

Strategic Insights -

U.S. software giant Microsoft Corp. has been under scrutiny in South Korea for alleged anti-trust activities, with Daum Communications Corp. filing a complaint against Microsoft's Korean unit with the Fair Trade Commission (FTC). The investigation, which began in 2001, centers around Microsoft's bundling of application software with its dominant operating system Windows XP. The FTC had previously indicated that it was close to completing the three-year probe.

Key Takeaways:

  • Microsoft's chief lawyer, Brad Smith, met with a senior official of South Korea's anti-trust watchdog to deliver the company's stance on the ongoing investigation.
  • The investigation, initiated in 2001, concerns Microsoft's alleged anti-trust activities, including the bundling of application software with Windows XP.
  • Daum Communications Corp. filed a complaint against Microsoft's Korean unit with the FTC, alleging that the bundling of software stifles competition.
  • The FTC has said it is close to completing the three-year probe into Microsoft's anti-trust activities.
  • Brad Smith visited Seoul for a four-day period, meeting with officials and stakeholders.
  • In a press meeting, Smith stated that Microsoft is cooperating with the investigation and declined to make predictions about the FTC's ruling.

Statistics:

  • 10 billion won (US$8.8 million) - the amount of damages sought by Daum Communications Corp. in its lawsuit against Microsoft.
  • US$600 million - the record fine imposed on Microsoft by European Union regulators for anti-trust practices in 2007.
  • 2001 - the year Daum took its first legal action against Microsoft with the FTC to block the release of Windows XP in South Korea.
  • 2007 - the year European Union regulators fined Microsoft a record US$600 million for anti-trust practices.
  • 3-year - the duration of the investigation into Microsoft's alleged anti-trust activities by the FTC.

Sources:

  • Asia Pulse, "Microsoft chief lawyer meets with Korea's anti-trust watchdog" (Oct 20)
  • Yonhap News Agency (no specific date)
  • Bloomberg (no specific date)
  • FAIR TRADE COMMISSION (FTC), South Korea (no specific date)
  • DAUM COMMUNICATIONS CORP. (KSE:035720), South Korea (no specific date)