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U.S. software giant Microsoft could pull its Windows operating system out of Korea as a result of a pending investigation by the Fair Trade Commission, Dow Jones reported Friday.
The business news service quoted a quarterly Microsoft report to the U.S. Securities and Exchange Commission as saying, "There is a possibility that the Korean Fair Trade Commission may request that code be removed from the Windows OS, or that a special version that complies with the Korean market be produced. If this were to occur, Windows could either be withdrawn from South Korea, or the release of new versions will need to be delayed." Microsoft recently settled a dispute with rival RealNetworks, paying a reported US$761 million to carry on bundling its Media Player into the Windows OS with impunity. RealNetworks also withdrew a complaint in Korea.
But that has not stopped Korea¡¯s FTC from continuing to probe whether Microsoft takes advantage of its market dominance by bundling Media Player and the MSN Messenger program into Windows. The FTC says the probe is independent of the RealNetworks complaint and goes to a question of fair trading.
The ruling is expected late this month or thereabouts.
Microsoft posted sales of US$224 million in Korea in fiscal 2004 ending in June, but that was less than 1 percent of its total global revenue of $37 billion. Press reports say this may have been one reason behind its comments as it tries to bow out of a market it sees as not worth clinging on to. However, it would be a blow to Korean industry if it did since Windows still dominates the market here.
But a Microsoft Korea executive says this will not happen. ¡°Headquarters¡¯ comments on withdrawing Windows from the Korean market was meant to describe business risks that can arise under the U.S. securities law,¡± he said. ¡°But at present we don¡¯t consider pulling Windows out of Korea, delaying release of new versions of Windows or taking any negative measures like that.¡±
(englishnews@chosun.com )
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