[Editorial] FTC's Work on Microsoft Incomplete

The Fair Trade Commission (FTC) is right to have decided to take action against Microsoft's "bundling" of programs with its operating system. There can be no discrimination between domestic and foreign companies when it comes to getting tough on activity that is harmful to fair competition, the foundation of the market economy. Microsoft's "bundling" practices are a global headache, and the very fact that Korea is the second place to take action, following the European Union, means Korea's fair trade authorities have come of age.

If you look at the details of the action being taken, however, it is hard to believe it will be effective. About the key issue of bundling Media Player and MSN Messenger together with the Windows operating system (OS), the FTC wants Microsoft to either separate those programs from the OS or distribute the OS with other companies' programs installed with it. People in the industry are expressing strong doubts as to how effective that will be. A separate OS would eventually exist in name only and the Microsoft "bundling" would continue through the practice of including other companies' programs as well. Also, there are concerns that under the pretext of including competitors' programs, Microsoft could demand the source codes for those programs and in doing so be in a position to take an unobstructed look at its competitors' technology and strategies.

The FTC must not disregard the assertions and concerns of the industry. It has not done all it is supposed to by taking action. Ultimately its role is restoring fair competition. The action it has decided to take will be judged by how successful it is at achieving that goal. Globally there are few precedents and the fusion of technology makes the functions and composition of computer programs ever more complicated, so enacting exactly the right measures is of course not something that was going to be easy. If it turns out that the FTC's decision does not have the effect of restoring fair competition then it needs to find alternatives.

The Hankyoreh, 8 December 2005.

[Translations by Seoul Selection]