South Korea's Antitrust Body to Hold Second Hearing on Microsoft Allegations

Strategic Insights -

South Korea's antitrust regulatory body will hold a second hearing on allegations that Microsoft Corp. has violated the nation's fair trade laws and exploited its dominant market position to the detriment of smaller competitors. The hearing comes as a result of complaints filed by Daum Communications Corp. and RealNetworks Inc., which accuse Microsoft of bundling its instant messaging software and media player with the Windows operating system. If the ruling is unfavorable to Microsoft, the company has stated it will appeal.

Key Takeaways:

  • The second hearing on Microsoft's antitrust allegations will be held on Tuesday, with the Fair Trade Commission's chief, Kang Chul-kyu, chairing the session.
  • The hearing is a result of a complaint filed by Daum Communications Corp. in July 2003, accusing Microsoft of bundling its instant messaging software with Windows.
  • RealNetworks Inc. also lodged a complaint with the FTC in November 2003, accusing Microsoft of incorporating its media player and media server programs into Windows.
  • The European Union's antitrust regulators ordered Microsoft to strip its Music Player from several versions of Windows in March 2004 and levied a fine of 497 million euros for violating antitrust regulations.
  • Industry observers believe that an FTC ruling against Microsoft would deal a severe blow to the company in global terms, drawing a series of antitrust complaints against it.
  • Microsoft has stated it will immediately appeal if the FTC rules against the company, citing a similar case in the European Union.

Statistics:

  • 497 million euros: Fine levied by the European Union's antitrust regulators against Microsoft for violating antitrust regulations.
  • 2004: Year in which the European Union's antitrust regulators ordered Microsoft to strip its Music Player from several versions of Windows.
  • 4 years: Length of time between Daum Communications Corp. filing an antitrust complaint against Microsoft and the second hearing scheduled for Tuesday.
  • 2: Number of companies that have lodged antitrust complaints against Microsoft, including Daum Communications Corp. and RealNetworks Inc.

Sources:

  • Yonhap
  • Asia Pulse (August 22, 2007)