SEOUL - Microsoft
Corp, which is awaiting a landmark antitrust
ruling here, has warned that the world's largest
software maker may withdraw its near-ubiquitous
computer operating system Windows from South Korea
if the ruling is unfavorable, according to the
company's filing with the US regulators.
Microsoft and South Korea's antitrust
regulator, the Fair Trade Commission (FTC), have
been in a dispute since 2001, when local Internet
portal Daum Communications Corp accused the US
company of bundling its instant messenger software
into versions of its dominant Windows operating
system.
The investigation was widened
after a US software company, RealNetworks Inc,
filed a complaint with the Korean commission last
November condemning Microsoft for tying its audio
and video software into Windows, allowing the
company to have an unfair advantage over rival
music and video software companies.
Earlier this month, Microsoft said it had
reached an out-of-court
settlement in the antitrust
dispute with RealNetworks in return for paying the
rival company US$761 million.
Because of
the deal, RealNetworks canceled its complaint
here, but the commission said it will continue to
investigate Microsoft, saying the settlement won't
affect its ruling.
On Wednesday, the
commission opened its latest hearing to decide
whether Microsoft has violated the nation's
fair-trade rules. Many believe that the decision
will be against Microsoft.
"The commission
could enter a remedial order that could bar us
from offering a version of Windows Server with
Windows Media Services as an optional component,"
the Form 10-Q filing made Thursday by Microsoft
with the Securities and Exchange Commission said.
"If the FTC enters an order requiring
Microsoft to remove code or redesign Windows
uniquely for the Korean market, it might be
necessary to withdraw Windows from the Korean
market," the statement said.
In another
action, Microsoft may delay offering new versions
of Windows software in South Korea unless the
remedial order is stayed or overturned on appeal,
it said.
An e-mail seeking comment sent to
Oliver Roll, a spokesman for Microsoft's
Asia-Pacific division in Singapore, wasn't
immediately returned.Microsoft's Korean unit
spokesman Kwon Chan didn't respond to office and
mobile phone calls Friday morning.
If the
Korean agency rules against Microsoft, the
regulator could order the US company to remove
parts of bundled software from its Windows
operating system, according to local newspaper
reports.
In addition, the commission can
impose fines of up to 5% of Microsoft's annual
sales in South Korea if the company is found to
have violated the nation's fair trade rules.
Microsoft could appeal such a verdict,
heralding a fierce legal fight with the Korean
commission.
