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

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

consumers

[mary_will_grow]

By the settlement, Microsoft will pay Daum $30 million, including $10 million in cash. In return, Daum would drop its lawsuit.

OK, but "justice has not been served". The problem of unfairly putting Microsoft's IM client in a favorable light is still there, and this company will still lose their market share to them, and consumers will still be worse off for having lost some competition.

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

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.

Re:Where's the 20M$

[interstellar_donkey]

The remaning $20 million will be paid out in "Microsoft Fun Bucks", little blue and green notes with pictures of smiling MS execs on them. These can be used to purcahse certian Microsoft products, food at the MS headquarters cafeteria and items at the MS giftshop.

At current rates, $20 million in MS fun bucks can purchase 4 force feedback joysticks, a copy of 'Age of Empries, 10 Microsoft branded tote bags and a dozen MS ballpoint pens. With enough left over for a cheese and mushroom omlet at the cafeteria.

Mod me troll if you want

[NVP_Radical_Dreamer]

But I personally see no problem with bundling their client with the operating system, or even the media player for that matter. Most users use the computer as an appliance, they want it to just work. They dont want to go find an IM client and media player and install it, they expect it to just be there. If you dont like it, remove access to it via GPEDIT.

What I DO have a problem with is the amount of "digging" the average person has to do to find a way to remove them if they dont want them there.