Microsoft on thin ice with S. Korea threat

[earobinson]

After a four-year investigation of Microsoft by the South Korean Fair Trade Commission (KFTC), the software giant has threatened to take its ball and go home. The commission is looking into whether Microsoft's inclusion of its instant messaging software and media player in Windows violates the country's antitrust laws. In a new turn, Microsoft has said it may be forced to withdraw Windows from South Korea entirely if the KFTC requires it to tailor a version of Windows specifically for the country.

The fact that the standoff is taking place in South Korea is significant because the nation boasts staggering levels of broadband adoption, gaming and PC usage. While avoiding the trouble of creating a South Korean version of Windows is probably tempting, forcing an entire nation of high-consumption technology users to explore alternatives to the operating system may be more detrimental in the end. If such a shift did take place, the world would surely be watching to see how the change would impact the country and its tech industry.

As issues related to Microsoft's market dominance tend to do, the debate has touched a nerve in the blog world. Many see the threat as yet another bullying tactic meant to strongarm an entire government into relenting to the company's wishes. But some dare to ask the unthinkable: Shouldn't a company be allowed to decide where it does business without being condemned?


Original Source: http://news.com.com/2061-11199_3-5920794.html?part=rss&tag=5920794&subj=news

Also a copy on my blog if this link dont work

[drizek]

BS. they will never do that. they are just pulling empty threats. MS will bend over backwards for korea and everyone knows it.

[drizek]

BS. they will never do that. they are just pulling empty threats. MS will bend over backwards for korea and everyone knows it.

[Xian]

It would seem that the average Joe doesn't give a rip about any of this, and just wants a system that is the most functional. MS released a version of XP that didn't have the bundled goodies and it sold about 2 copies (you get the idea). For crying out loud just let the market decide what it wants. So what if MS puts in a media player of its own brand? The last time I checked Chevy and Ford did the same with a lot of their cars. You don't see them ripping out those units and trying to sell an auto with no radio just so people can put in something different if that is to their liking.

Firefox has demonstrated that you can build a better mouse trap and win over the market, all without hiring a team of lawyers that whine continually to the courts and demand a packaged alternative.

[BWF89]

The default installation of Macintosh OS10 includes 2 browsers. Apple's own Safari and Mozilla's Firefox. That way they don't have to worry about getting sued for anti-trust and they give the consumer a choice. Microsoft should do the same.

[blastus]

The Chevy/Ford - Microsoft analogy is not fitting. Unlike Chevy and Ford, Microsoft is a monopoly. It doesn't cost consumers anything to switch manufacturers from Chevy to Ford or vice-versa. For example, if you own a Chevy; there are no migration costs, no conversion costs, no training costs, and no applications barrier to entry issues if your next automobile purchase is a Ford instead of a Chevy. With Ford/Chevy there is no such thing as vendor lock-in and there are no interoperability issues--you can fill up at any gas station and drive on any road.

If markets were left to decide everything we would have monopolies left and right. Market forces do not have mechanisms to stop monopolies. That is why the government steps in. Monopolies are not good for the economy; they limit consumer choices, stifle innovation, stifle fair competition, and inflate prices. Again, that is why the government steps in.

[xequence]

South Korea is a giant market for games, and if software companies that make games for windows cant sell to south korea (because of no windows) then they will start making more linux and OSX games.

[BWF89]

South Korea is a giant market for games, and if software companies that make games for windows cant sell to south korea (because of no windows) then they will start making more linux and OSX games.
After a few years of growing pains and angry consumers protesting in the streets.

[Pathogenix]

Interestingly, I've just installed Xp for the third time this weekend. When I went to do all the automagic updates, I noticed that the Microsoft Malicious Software Removal Tool is installed as an update.

Now, leaving aside the curious downgrading of Gator manufacturers Claria (coincidentally during M$'s acquisition talks with same), is this a Good Thing likely to reduce the number of infected boxen, or a Bad Thing likely to infuriate monopoly commissions around the world?

[Brunellus]

After a few years of growing pains and angry consumers protesting in the streets.
Probably won't come to that. But there will be a knock-on effect in the form of increased (and more efficient) software piracy.

[earobinson]

South Korea is a giant market for games, and if software companies that make games for windows cant sell to south korea (because of no windows) then they will start making more linux and OSX games.
Thats what I was thinkig in the op


Probably won't come to that. But there will be a knock-on effect in the form of increased (and more efficient) software piracy.
I dont think thats the problem, what would be a problem is that all the gov and biz would have to use something else because they cant pirate software. But I 2 think ms is probaly crying wolf.

[towsonu2003]

BS. they will never do that. they are just pulling empty threats. MS will bend over backwards for korea and everyone knows it.

they can, but then S. Korea would become a big place of pirated win xps... don't think they'll go w/ linux or anything...

[Xian]

Heh, okay fine. Let MS open their code as seen appropriate by the court, strip XP of some proprietary software, box it all up as XP-Lite and let it collect dust on the shelves. This whole scenario is just stupid. There is not a market economy in the world that will support any such ridiculous endeavor. If MS really is a monopoly in the classic sense then break the damn thing up and get it over with already. Of course that won't happen because any elected idiot that seriously fought for that outcome would be tossed into the nearest river with a dunce cap on their head by the voting public.

[blastus]

Unfortunately antitrust laws have been completely ineffective in the U.S. I believe it is because the U.S. believes that Microsoft is critical to sustaining U.S. world domination of computing technology (especially software.) It is more important to the U.S. to maintain its world domination of computing technology rather than to enforce the Sherman antitrust laws against Microsoft. They would rather deal with the economic and other casualties of Microsoft's monopolies than risk losing world domination. To further complicate this, part of the reason why the antitrust laws have been ineffective against Microsoft in the U.S. is, because they were framed before computing technology ever came into existence. There are certain highly relevant issues that are only applicable to the computing technology industry and really no other industry.

In the short term I agree with them, but in the long term I believe Microsoft will have a devastating effect on the North American technology industry. They are accumulating economic power like no other corporation has ever done in history (they now have some 60 billion in cash reserves.) They have a monopoly on operating systems and office software and will use those as leverages to obtain monopolies in every other sector.

I don't believe there is anything the U.S. DOJ can do now because they have already set the precedent and sanctioned Microsoft's monopolies and business practices. It's basically to late--their hands are tied. Fortunately, the European Union and other foreign nations do not have the same agenda of the U.S. government--that is to further U.S. world domination of computing technology. For this reason, I believe that international antitrust laws against Microsoft will be more effective internationally. It's already too late in the U.S. (and I would add Canada to that too.)

[earobinson]

they can, but then S. Korea would become a big place of pirated win xps... don't think they'll go w/ linux or anything...
In home use yes, bug offices and goverements could not get away with this and would have to switch