Microsoft sued by S.Korean instant messaging rival

SEOUL, April 12 (Reuters) – Daum Communications Corp <035720.KQ>, South Korea’s top Internet portal, said on Monday it was suing Microsoft Corp (nasdaq: MSFT – news – people) and its Korean unit for alleged unfair business practices related to instant messaging software.

“Microsoft used its dominant market position by bundling its Instant Messenger program to its Windows XP operating system and that has caused significant damage to Daum,” Daum said in a statement. “By using its dominance in PC operating systems, Microsoft is excluding rivals from Internet messenger markets.”

Daum, which has its own messaging service, said it had filed a 10 billion won ($8.74 million) indemnity suit at the Seoul District Court.

Officials at Microsoft Korea could not immediately be reached for comment.

The move comes after European regulators fined Microsoft a record 497 million euros last month for breaking antitrust law and ordered it to strip Windows Media Player software from its operating system. Microsoft has said it will appeal the ruling.

Microsoft Korea reported a 35 billion won net profit in the fiscal year ended June 2003. Daum made a 25.2 billion won net profit in 2003 on sales of 141 billion won.

Source: Forbes