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April 12, 2004

Microsoft faces Korean suit

Still smarting from its recent hefty fine by European regulators, Microsoft Corp has now been hit with a lawsuit from South Korean Internet portal firm Daum Communications Corp alleging unfair business practices.

By CBR Staff Writer

This time the suit, which was filed at Seoul’s District Court, is aimed mainly at Microsoft’s Korean business division, and alleges that Microsoft used its dominant Windows XP operating system to bundle in its Instant Messenger program.

In a statement, Daum claims this practice has caused the company significant damage. By using its dominance in PC operating systems, Microsoft is excluding rivals from Internet messenger markets.

Daum has filed for around $8.7m (10bn Won) in damages.

Microsoft was fined a record $600m (497m Euros) by European regulators last month for violating antitrust laws and was ordered to remove its Windows Media Player software from its operating system. Microsoft is appealing the decision.

Daum reported revenue of 141bn Won and a net profit of 25.2bn Won last year.

Microsoft Korea recorded net profits of 35bn Won in its fiscal year ended June 2003.

This article is based on material originally published by ComputerWire

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