South Korea said it regrets a statement by Microsoft Corp. that it may withdraw from the country over an antitrust dispute regarding the bundling of its software products.
Microsoft has been under investigation by the commission, which is looking into the company’s inclusion into Windows of streaming media and instant messenger technology. It held its final hearing into the case last week. A ruling could come at any time.
The Ministry of Information and Communication expresses regret that Microsoft, which has more than 20 million customers in South Korea, officially mentioned the possibility of pulling out from the South Korean market at a time when the Fair Trade Commission is proceeding with its probe according to legal procedures, the ministry said in a statement. The ministry stresses that Microsoft, as a global company, must assume its responsibility to its companies and customers, the statement said.
Microsoft, in its quarterly report filed with the U.S. Securities and Exchange Commission last week, said "it might be necessary to withdraw Windows from the Korean market or delay offering new versions in Korea" should the antitrust regulator require it to remove code or redesign Windows uniquely for the South Korean market.
The Redmond, Washington-based company subsequently issued a statement saying it concluded such a filing was obligatory under U.S. securities laws.
We want to reiterate our strong commitment to the Korean market, our many partners in Korea, and, most of all, our Korean customers, Microsoft said.
Daum Communications Corp., a South Korean Internet portal, filed a complaint in 2001 alleging that Microsoft violated trade rules by tying its instant messenger software to Windows.
The Fair Trade Commission can order "corrective measures" such as separating the bundled software if Microsoft is found to have engaged in unfair practices in South Korea. Fines of up to 5 percent of total sales in the country for Windows software during the period of any unfair practices can also be levied.
The commission said at the time that the settlement wouldn’t have any effect on its investigation.
Microsoft agreed last month to settle an antitrust lawsuit with RealNetworks Inc. by paying up to $761 million in cash and services. Seattle-based RealNetworks had also filed a complaint against Microsoft in South Korea.
The European Union ordered Microsoft in March 2004 to pay US$597 million, share code with rivals and offer an unbundled version of Windows without the Media Player software. Microsoft has appealed.