The FTC ordered Microsoft to sell in Korea a version of its Windows operating system that includes neither Windows Media Player nor Windows Messenger functionality, and required that Microsoft facilitate consumer downloads of third party media player and messenger products selected by the Commission. It additionally prohibited Microsoft from selling a version of its server software that includes Windows Media Services in Korea.

Responding to the announcement on Wednesday, J. Bruce McDonald, Deputy Assistant Attorney General for the Antitrust Division of the US Department of Justice, stated that:

“The Antitrust Division believes that Korea’s remedy goes beyond what is necessary or appropriate to protect consumers, as it requires the removal of products that consumers may prefer. The Division continues to believe that imposing ‘code removal’ remedies that strip out functionality can ultimately harm innovation and the consumers that benefit from it. We had previously consulted with the Commission on its Microsoft case and encouraged the Commission to develop a balanced resolution that addressed its concerns without imposing unnecessary restrictions."

"Sound antitrust policy should protect competition, not competitors, and must avoid chilling innovation and competition even by ‘dominant’ companies. Furthermore, we believe that regulators should avoid substituting their judgment for the market’s by determining what products are made available to consumers."

He continued:

“The European Commission adopted a similar approach in its challenge to Microsoft’s bundling Windows Media Player. Since then, demand in Europe for the version of the operating system with the media player code removed has been lackluster, suggesting limited effect on competition from the type of unbundling remedy the Korean Fair Trade Commission is pursuing."

“Notwithstanding today's divergence, it is important to emphasize the overall strong and positive relationship between the US and Korea on matters of competition policy. The continued success of this working relationship is particularly important in the context of global markets, where the sale and use of products stretch across borders. The Justice Department will continue to work constructively with Korea to develop sound antitrust enforcement policies that benefit consumers in both countries.”