Microsoft Fined 33 Billion Won for Antitrust Violations

Microsoft (MS), the world’s largest software company, has been fined 33 billion won by the Fair Trade Commission (FTC) for violating rules of fair trade.

MS will also have to release two versions of Windows – one without the Windows media player and MSN instant messenger, and another in which the software of competing companies can also be downloaded.

The FTC ruled in its meeting on December 7 that placing the MSN instant messenger, Windows media player and media server in its Windows operating system was a “bundle sale” that capitalized on the company’s dominance.

MS will have to follow the ruling of the FTC within 180 days.

FTC chairman Kang Chul-kyu said at the press conference, “MS’s bundle sales have blocked competition between software manufacturers and have resulted in hindering the benefits of consumers.”

Tom Burt, corporate vice president and deputy general counsel at MS replied, “FTC’s ruling is inflicting damage to many consumers to help just a couple competing companies. We will take legal actions.”

Chang-Won Kim changkim@donga.com sanhkim@donga.com