South Korean firm to sue Microsoft

Microsoft's new PC operating system, Windows XP, is facing another legal challenge - this time from South Korea.

Microsoft, which accounts for more than 90% of Korea's operating system market, is using its monopolistic position to force local PC makers to buy Windows XP and other software features

Daum Communications

Daum Communications, a Seoul-based internet service provider, has filed a complaint against the software giant with the Korea Fair Trade Commission.

The company says Microsoft's bundling of functions like instant messaging, internet telephony and digital picture handling amounts to an unfair trade practice.

Daum has 20% of Korea's instant messaging market.

"Microsoft, which accounts for more than 90% of Korea's operating system market, is using its monopolistic position to force local PC makers to buy Windows XP and other software features," the company said.

Microsoft Korea said it could not comment before it had been through the complaint in detail.

Bundling

The question of bundling has dogged Microsoft for years, ever since it started including the Internet Explorer web browser in its operating system.

Windows XP follows Windows 2000

XP, which is expected in shops in October, takes the issue further by including a string of functions which third-party manufacturers complain could put them out of business.

The question of whether that amounts to illegal action under US antitrust laws remains to be concluded, and is one of the tasks facing the new judge running the US government's case against Microsoft.

According to opponents, Microsoft uses its muscle to ensure it controls as many ways of accessing information - especially that which could be charged for, such as music and video - over the internet.

Its Media Player software has been accused of breaking other forms of multimedia playback software installed on Windows PCs.

And its plans to include "smart tags" - designed, detractors say, to push users to websites which are Microsoft allies - were withdrawn after a hail of protests from privacy and consumer advocates.