South Korean antitrust regulators yesterday ruled that Microsoft Corp abused its market dominance, fined it 33 billion won (US$32 million) and ordered the software giant to offer alternative versions of Windows. Microsoft said it will fight the decision in court.
The Korea Fair Trade Commission found Microsoft's practice of tying certain software to Windows constitutes an "abuse of market dominant position and unfair trade practices," Kang Chul-kyu, the commission's chairman, told reporters.
The ruling comes after the US software giant reached separate settlements with companies that then withdrew the complaints that led to the investigation. The companies had complained that Microsoft violated trade rules by tying its instant messenger software to Windows.
The commission ordered Microsoft to offer two versions of Windows in South Korea within 180 days. One version must be stripped of the Windows Media Player and Windows Messenger software, while the other version must come with links to Web pages that allow consumers to download competing versions of such software, the commission said.
Windows Messenger is an integrated feature that comes with Windows. MSN Messenger, another instant messaging software, must be downloaded separately.
"This decision will restore competition in the previously distorted markets," Kang said.
"It will also "serve as an impetus for the domestic software industry, which has been behind in comparison to the hardware industry, to develop further," he said.
The corrective measures will remain effective for 10 years, and after five years Microsoft will have the opportunity each year to request a review of the remedy to account for changes in the market environment, the commission said.
"We are very disappointed with the commission's decision," said Tom Burt, a Microsoft vice president and deputy general counsel. "Ultimately, we will file a lawsuit in Korean court challenging the decision."
Last March the EU ordered Microsoft to pay 497 million euros (US$586 million), share code with rivals and offer a version of Windows without Media Player software. Microsoft is appealing that ruling.
Microsoft's troubles in South Korea began when Daum Communications Corp, a local Internet portal, filed a complaint to the commission in 2001 that Microsoft allegedly violated trade rules by tying its instant messenger software to Windows.
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