14 DAY TRIAL // Microsoft’s Windows is obviously the number one operating system among Internet cafes in South Korea, but it turns out that the software giant could be abusing of this dominant position and asking local businesses to pay more for its operating system.
Korea Times is reporting that the Internet PC Culture Association (IPCA), which represents local Internet cafes (also referred to as PC Bang) will soon file a legal action with the Korea Fair Trade Commission (FTC) to formally accuse Microsoft of violating competition laws.
“We will protect the rights and interests of local PC Bang. IPCA has decided to bring MS Korea to a local court as the Korean affiliate of the U.S. software giant broke the competition law,” an IPCA official was quoted as saying by the aforementioned source.
“By abusing its dominant market power, owners of local PC Bang are being cornered over survival. They are increasingly being pressured to additionally purchase Windows platform via MS Korea’s legal representatives. This is unilateral and unfair.”
While the Korean division of Microsoft has already been fined in 2006 for getting involved in some unfair business tactics, the company this time claims that everything is perfectly legal and no competition rules violation is happening.
“It’s out of the question that we have licenses only for local PC Bang and we have never asked them to pay more. MS Korea has been consistent in persuading our headquarters to launch promotional campaigns to take illegal Windows software away from countries in the Southeast Asian region, including Korea. Despite our genuine gesture, local PC Bang have been passive,” a company spokesperson was quoted as saying.
And still, Internet café owners claim that Microsoft is actually breaking the law by asking them to pay for the Get Genuine Windows Agreement with every single purchase.
“We are required to sign an agreement with MS for GGWA and rental licensing agreement, separately, and this is against the competition law. All owners of PC Bang should pay for GGWA to operate computing systems in the facilities. But MS is asking us to additionally pay for rental licensing, which is an unfair business practice.”
We’ve also reached out to Microsoft for a word on this, so we’ll update the article accordingly when and if we get an answer.