Microsoft Appeals Korea Antitrust Ruling

Microsoft said on Monday that it had filed an appeal in the Seoul High Court against a decision by the South Korea Fair Trade Commission. In the ruling, the KFTC ordered Microsoft to unbundle both its messaging and media player software from the Windows operating system.

The KFTC also fined Microsoft $33 million USD, and gave the company 30 days to appeal.

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

Microsoft called the restrictions placed on it more severe than those of the European Union, which it is also appealing. Whereas in Europe customers can still purchase a regular version of Windows, in Korea that would not be possible.

While rumors circulated last year of a possible pullout of South Korea by Microsoft, analysts said such a move is highly unlikely. The country is one of Microsoft's top ten largest markets. Also, the ruling would likely not have much effect on the company outside of Korea.