Updated Mar.27,2006 21:36 KST

Microsoft Faces Fresh Suit Over Media Player

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Microsoft faces another lawsuit of more than W10 billion (US$10 million) over its bundling of software into its operating system, which competitors say is a monopolistic practice. Application software manufacturer Sanview Technology, headquartered in San Jose of the U.S. and its Korean office on Monday filed a suit at the Seoul High Court against Microsoft for W10 billion in damages. The plaintiffs say Microsoft erects barriers for competitors by selling a version of Windows that incorporates the Windows Media Player, taking advantage of its share of more than 99 percent in the Korean computer operating system market.

Sanview says it invested W3.8 billion over several years to develop its own media player technology and launched its high-definition player software in 2002. However, it alleges it encountered difficulties selling the product because of Microsoft¡¯s bundling, suffering more than W40 billion in losses.

Meanwhile, Microsoft is seeking a reversal in the Seoul High Court of the Fair Trade Commission¡¯s decision to fine the company W33 billion for bundling. Microsoft rejects the FTC¡¯s finding that it failed to compete on an equal footing by incorporating its instant messenger and other features into Windows. The firm says the decision ignores the fact that users can easily download any other software they like.

The FTC imposed the fine last December and ordered the company to separate the software from Windows or permit embedding of rival products in its operating system.

(englishnews@chosun.com )