Korea to judge software battle

Two global software giants are taking their battle to Korea’s Fair Trade Commission. The agency said yesterday that Real Networks, a U.S.-based Internet multimedia solutions developer, filed a complaint that Microsoft is integrating its media player with the Windows operating system. Real Networks is the maker of Real Player, a program that enables users to create, send and receive audio, video and other multimedia services over the Internet. Although the agency has yet to make an official comment, sources say it is leaning towards Real Networks. “The commission does not view Windows as a converged product,” said Huh Sun, an agency official. A converged product is one that has fused functions, differing from a product that has additional functions, the official said. Real Networks held 90 percent of the video and music player program market in Korea until 1999. Now, that market share is almost down to zero. The company claims that this is because Microsoft began including its own media players in the Windows operating system, making it unnecessary for users to operate other multimedia players. Similar occurrences in other countries have led to the software developer's attack on Microsoft beyond the United States. Last March, the European Union fined Microsoft 497 million euros ($650 million) for bundling Media Players in Windows, after Real Networks filed an antitrust lawsuit. Analysts say that Real Networks chose Korea as a battleground as it has a strong technology infrastructure, and the free-trade watchdog here is known for strongly restricting monopolies and oligopolies. “The Fair Trade Commission's ruling will be an important standard for the future software market, since products these days all support multiple functions,” said Lee Sang-seung, a Seoul National University professor. The ruling may also affect Microsoft’s plans, which include adding Web search functions such as those offered by Yahoo or Google, to its upgraded Windows edition, to be launched in 2007. It will not be the first such case here. In 2001, Daum Communications, a Korean portal, filed against Microsoft with the commission for including its MSN Messenger service on Windows. The agency has not yet ruled on the case. by Kim Young-hoon, Wohn Dong-hee