Through an in-depth analysis of the Korea Fair Trade Commission (KFTC)
case—which led to a December 2005 decision, currently under appeal at the
Seoul High Court, condemning three fundamental tying practices embedded in
Microsoft’s global business strategy—the author clearly establishes the
precise nature of Microsoft’s anticompetitive practices, complete with clear
technical descriptions of the underlying applications and digital media
systems. The discussion develops valuable guidelines on such core issues as
the following:
• network effect, tipping effect, and lock-in effect
• separability of Microsoft’s tied and tying products
• forced purchase by consumers of multiple tied products
• Microsoft’s reinforcement of market entry barriers
• Microsoft’s “normal business practice” defense
• cumulative damage to consumers’ interests
The book’s ultimate legal and economic assessment clarifies ways in which
government competition authorities can select from globally available options
on a case-by-case basis, enforce re-pricing measures, avoid belated remedies,
and continuously monitor new types of anticompetitive conduct.
Table of Contents. Abbreviations. Figures and Tables. 1. Introduction.
2. Backgrounds and Case Reference. I. New Digital Network Economy:
Digital Media System and Instant Messaging System. II. Global Case
References. 3. Korea Microsoft Case: Multiple Tyings in the Digital
Media System and Instant Messaging System. I. Korean Legal System: the
Monopoly Regulation and Fair Trade Act on Tying Practices. II. Factual
Background of the Korea Microsoft Case. III. KFTC Decision (2005). IV
. Appeal of the KFTC Decision to the KFTC. V. Appeal of the KFTC
Decision to the Court. 4. An Assessment on the Multi-tying Practice.
I. Purposes and Methods of Legal and Economic Assessment on the Korea
Microsoft Case. II. Microeconomic Assessment. III. Macroeconomic
Assessment. IV. Assessment on Efficiencies of Multi-tying Practice.
V. Assessment on Corrective Remedies. VI. Transjudicial
Availability of the Assessment on Microsoft’s Multi-tying Practice.
5. Conclusion. Appendices. References. Glossary. Index.