Microsoft Settles Korean Antitrust Case

Channy writes Microsoft announced on last Friday that it had reached a settlement with South Korean Internet portal Daum in antitrust case of IM bundling. Daum had complained to the South Korean Fair Trade Commission in 2001, accusing Microsoft of breaking the law by tying its instant messaging software to Windows. A lawsuit on the same grounds was filed in 2004. By the settlement, Microsoft will pay Daum $30 million, including $10 million in cash. In return, Daum would drop its lawsuit. Before this decision, Microsoft has threatened to withdraw its Windows software from South Korea if the country's antitrust agency orders it to unbundle its instant-messaging and media player software from the operating system. Despite this settlement, KFTC announced plans to continue investigation of this case and conclude the final decision within this year."

Comments

When is Microsoft not being sued?

[TwoTailedFox]

Is it me, or is everywhere I turn a lawsuit against Microsoft, in some form?

Where's the 20M$

[SpaghettiPattern]

Microsoft will pay Daum $30 million, including $10 million in cash

Where's the 20M$ remaining? Are they paying in licenses? Again? How long before MS licenses are on the forex rates?

How does that work?

[schon]

Microsoft will pay Daum $30 million, including $10 million in cash.

So.. the other $20M will be in the form of an NSF cheque?

And when is the drop for the cash going down? Is the $10M going to be in small, non-sequentially numbered, unmarked bills?

This should drive China to Linux

[G4from128k]

I'm sure that Chinese officials are taking one look at Microsoft's threat to withdraw from Korea and realizing that they don't want China to depend on such a capricious foreign vendor.

What will happen when China stops using Windows and also becomes the leading maker and buyer of PCs? Companies that do business with China (and most do) will see less and less advantages in staying 100% Windows and less and less likely to buy Microsoft's nonstandard applications.

Re:This should drive China to Linux

[JonN]

This isn't the first drive, and this isn't the last. From this article:

The bad news for Microsoft: China decided to do this by switching to Chinese companies, many of which develop for Linux.

And what is interesting about this article? Check the date: Wed Jan 09 2002

Far less than $30mil

[Tango42]

$10 million cash payment by Microsoft to Daum, $10 million in advertising deals and unspecified business terms worth a further $10 million.

So that's only really $10mil. The advertising probably won't cost MS much (they probably couldn't sell it for $10mil to anyone else - they wouldn't advertise a competitor anywhere noticeable anyway), and "unspecified business terms"? That's just giving MS more business - even if they don't make money from it, they won't lose much (they have to employ all their people anyway - might as well keep them busy).

So Daum gain $30mil, prehaps, but MS don't lose anywhere near that much. I don't know South Korean law, but I expect they could have won far more if they'd gone to court.

...so the bottom line is...

[bogaboga]

...that M$ continues to bundle, just like before. I have come to one conclusion. Courts in Korea are just as inept as those in this USA. Sad indeed.

Microsoft just never seems to run out of money

[magnumquest]

Just a while ago Microsoft had settled a lawsuit with Real Networks for $761 million. $256 million just went to malaria research from the Gates foundation. Is 30 million realy a big issue for Microsoft?. Its probably Bill Gates' wife missing 2 days grocery shopping. It makes sense why Microsoft would pay even after threatening to government to 'Withdraw Windows from the Korean Market' if the government did not comply with Bill Gates rules. Funny how eventualy Bill Gates will have more power than smaller governments, and the day is not far when we shall see news articles like 'Bill Gates urges Israel to re-write its constitution allowing more political power to the already predominantly Microsoft based computer economy in the country'. A few weeks ago Bill Gates had made a statement in Israel declaring war on google. Just think about it for a while. Bill Gates goes to a war infested country to say 'I am declaring war on Google, are ya with me folks?'.

Re:consumers

[flyinwhitey]

"Winner: The one with the deepest pockets! Subverting the not-quite-free-market to hurt consumers everywhere!"

Please exercise some critical thinking skills before you spout a ridiculous, overused meme like this.

Now, I would like you to explain how MS won this case with their deep pockets when

a) THEY DIDN'T WIN!!!
b) THEY DIDN'T WIN!!!
c) The other company was going to win before the settlement.

They settled. That's not a win, not even by the twisted, we-must-all-hate-MS-because-we're-slashbots mentality.

Just because they can pay a fine for their wrongdoings, and that fine isn't up to your standard, that does NOT mean they won.

So give it a rest.

MS Messenger vs. Apple Quicktime iChat

[digitaldc]

Does this mean that Apple will have to unbundle Quicktime from Tiger if it ever ships to South Korea or other countries with anti-trust laws as well?