Second round battle between MS and FTC over sales of its bundled software has begun.

On 27th, MS has filed for appeal in response to FTC’s (South Korea Fair Trade Commission) order to stop sales of MS’ bundled software last December. MS requested for withdrawal of FTC’s current decision on the case to relieve them from legal obligations. The MS also submitted same request to Seoul High Court.

Other Messenger/Media Players usages have risen sharply
MS has expressed that it has not violated any South Korean trade laws and in fact, it has benefited the Korean consumers and helped technological developments in Korean market.

FTC stands firmly on its decision on banning MS’ sales of combined versions of Windows media player (WMP) and windows messenger (WM) with windows operating system are deemed illegal.

However, MS also reaffirmed its position by saying that “as nature of windows operating system demands, it is only natural to apply innovative technology and therefore this particular issue can not be considered as a matter of antitrust case”.

MS Korea’s defense attorney Chung Jae-Hoon said “Consumers are easily downloading and using other soft wares already. And there are new competitors on the market like ‘Nateon messenger’ and ‘Gom Player’ who are very popular in South Korean market”.

The ‘Nateon messenger’ currently is no.1 in the Korean market and ‘Gom Player’ also had more than 30 million downloads just behind MS as a second runner up in the market.

Unlike in Europe, MS to separate WM
Comparing to recent Europe’s decision, MS disagrees on FTC’s order and thinks it’s out of line when considering sales of current MS windows version sales are allowed worldwide.
MS also has ongoing court case in Europe with similar ruling. But there are two distinct differences between Europe and South Korea’s rulings.

First, in European case ruling, it only requires MS not to sell WMP with its windows operating system whereas in South Korea it orders not to sell WM in addition to WMP with the MS windows operating system.

Second, in European case ruling, it ordered MS to supply both current version and separated version on the market, thereby allowing continued sales of N-version with ongoing court preceding, whereas in South Korea it does not allow any sales of current MS windows bundled software. And MS is only permitted to sale the current bundled product if they also allow other competitors software to be downloaded from their link as well.

MS lawyer Chung also said “MS has been providing consumers and developers alike with new innovative products to fulfill its needs not only to consumers but also to IT industry. But with this order form the FTC, it will put a break to it and surely affect further development in the market”.

MS now has to face South Korean Court with European court on its back already. In South Korean high court system, to reach a verdict it usually takes a minimum of a year to 18 months. In addition, appealing process with FTC also takes many months before any decisions are announced. Unlike in Europe it appears to be different for MS with this case in South Korea. The battle has begun.