Microsoft Loses Appeal in South Korea

The South Korea Fair Trade Commission this week turned down Microsoft's appeal of an antitrust ruling handed down in the country in February, which ordered Microsoft to unbundle both its messaging and media player software from the Windows operating system.

Microsoft was also fined $33 million, but was given 30 days to appeal the ruling, which it did in late March.

The case came out of two separate complaints filed by competitors Daum and RealNetworks in 2001. While both have separately settled their legal differences with Microsoft, South Korean officials said at the time its investigation would continue.

The Redmond company also appealed the case to the Seoul High Court, which has yet to issue a decision. If the Korean FTC order stands, Microsoft must offer two versions of Windows in South Korea by August 24, a requirement similar to one it had to follow in Europe.

In Korea, however, Microsoft must make two custom versions of Windows. One version must be completely stripped of Windows Media Player and Messenger, while the other includes links to download competing products.

Microsoft said in March that, "The facts do not support the KFTC's position. Consumers can easily download and use a wide range of software from many different companies. In fact, market data from Korean Click show that Korean consumers use multiple media players and instant messenger clients."

Microsoft officials have yet to comment on the rejection of the appeal.

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