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Asia and Pacific Region Forum

Daum sues Microsoft
Korean portal unhappy with instant messenger in XP

 12:39 am on Apr 13, 2004 (gmt 0)

article [news.yahoo.com]
Daum, the country's biggest portal with 35 million registered users for its free e-mail service, competes with Microsft in South Korea's booming instant messaging market.
Daum said that its domestic market share in instant messenger services fell sharply to 6.4 percent as of April 2003 from 20.3 percent in August 2001, while Microsoft's share rose to 75.5 percent from 29.4 percent.



 1:42 am on Apr 13, 2004 (gmt 0)

Daum`s lawsuit is an extension of its 2001 complaint filed with the Fair Trade Commission, when the company first protested the bundling of Messenger with Windows XP. The FTC has not yet made a ruling on the issue.
Source: Daum, MS locked in antitrust battle [news.media.daum.net]

 2:34 am on Apr 13, 2004 (gmt 0)

got to get up pretty early in this hemisphere to beat Brett [webmasterworld.com]...even though he posted in the wrong forum ;)

GrendelKhan TSU

 4:21 am on Apr 14, 2004 (gmt 0)

lol bill.

actually, I just keep forgetting to post that kind of news here (that news has been out for a while now).

just a pain to keep trying to translate stuff (and well, pick which to do so!)

ok...now I'm out early-post the brett man. :p (well, at least once). heh ;)


 7:29 am on Apr 14, 2004 (gmt 0)

Comeon Grendel...don't wait for me to post old news about Korea. You'll be sadly behind the times ;) It's about time you started pulling your weight around here :)

GrendelKhan TSU

 11:36 am on Apr 14, 2004 (gmt 0)

aaahhh the presssureee! :p

(ie: i'll see what I can do. lol ^^)


 12:22 am on May 14, 2004 (gmt 0)

Did anything come of this, or are the courts in Korea glacially slow like they are in Japan?

GrendelKhan TSU

 12:29 am on May 17, 2004 (gmt 0)

Did anything come of this, or are the courts in Korea glacially slow like they are in Japan?

nothing came of it that I know of. yes, they are that slow on stuff like this. AND generally this kinda of thing can be throw into indefinite litigation.

I pretty much think it was a PR stunt more than anything.

Anyway, IMO, Daum's got much bigger problems nowadays with Nate's (formerly Lycos Korea) new cyberworld service--which is kinda a combo of online cafe, forums, blogs, snapfish, friendster and asian avatar stuff all in one---and all on steroids. lol. Daum's real bread and butter has always been its cafes (not its search). But the "old school" Daum cafer's seem to be migrating to the more convenience sexier Nate's service.

time will tell, but I think this area is going to be a big issue for the portal giant.

how it will effect the search war out here is anyone's guess at this point.


 12:52 am on May 17, 2004 (gmt 0)

Having done business in Korea, I can assure some of the readers, that if there is a country where monopolistic corruption is encouraged, it is in Korea.

We've sat for days and weeks in pitches in my previous jobs when I used to run the sales ops there, only to have the company go "we have given the contract to our IT company". Most korean chaebols (or colgomerates) have their own IT companies which do their SI work. Our ideas were then ruthlessly err ... nevermind.

Don't even get me started on how the Unisys' and IBMs win their business. :)

Bottom line, I'm glad to see a good old capitalistic American software company challenge the Koreans in their own backyard.


 6:59 am on May 17, 2004 (gmt 0)

I think Daum's out on a limb, here. Bundling MSN messenger hasn't crippled AIM, YIM, or ICQ over here, so M$ would prolly be able to argue successfully that bundling a messenger isn't an overwhelming business advandtage.

Which, oddly, would make Micrsoft's loss here, a win for them in Korea...

Ermm... I should get some sleep. I'm conclusions my drawings again.


 7:53 am on May 17, 2004 (gmt 0)

It sounds to me like Daum's IM software/format has been heading for obscurity even without MS's presence in the market. Is there a tradition in Korea, as there appears to be in some Western countries, to sue or threaten legal action to save a sinking ship?

GrendelKhan TSU

 9:25 am on May 17, 2004 (gmt 0)

It sounds to me like Daum's IM software/format has been heading for obscurity even without MS's presence in the market. Is there a tradition in Korea, as there appears to be in some Western countries, to sue or threaten legal action to save a sinking ship?

I couldn't say on a whole, but I've seen it. Let's just say I'd be shocked if anything came of the suit or even if Daum EXPECTED anything to come from it.


 5:48 pm on May 18, 2004 (gmt 0)

This lawsuit is so dumb, I hope Microsoft buries them in court then files a counter-suit against them for wasting their time.

Didn't these clowns learn anything from the browser wars? Microsoft still makes Internet Explorer part of the operating system and every other browser manufacturer has to deal with it - and has to make their product THAT MUCH BETTER to be competitive. I mean that's just simple business 101.

What ever happened to businesses actually making their products BETTER to compete with each other? Now it seems all they want to do is cry "NO FAIR" like little kids and pout until a court gives them their way.

If Microsoft wants to put MSN Messenger with their operating system, that's their right. Everyone still has 3 options as far as I can tell:

(1) UNINSTALL MSN Messenger

I don't recall seeing anything out there where Microsoft PREVENTED people from using any third party instant messengers. I uninstalled MSN Messenger the day I installed Windows XP. I will never use MSN Messenger.

Oh and for the record ... yeah this will tick some people here off, but I think if Microsoft decided they DID want to prevent a particular piece of software from working with their operating system, that should ALSO be their right. You always have the right to use another operating system, no one forces you to use Windows. You either chose windows, or you chose a computer that came with Windows pre-installed and chose not to uninstall it. As long as you have that choice, there should be no legal intervention.

The day a court decides how a company should make their product instead of the company and its customers is a day when WE ALL LOSE.

GrendelKhan TSU

 11:51 pm on May 18, 2004 (gmt 0)

wow, you seem to be taking this kinda personal. Its all good m8... ;)

Daum doesn't have a strong case, and I think they KNOW it....its just that they don't really care. ITS NOT THE POINT. Like I said, I think it was more for publicity and some desperation more than anything else. Successful to an extent I see....I mean look! it made it to the index page of WebmasterWorld! *ahem* :p Frankly, I don't see why this is such an interesting topic at all (enuff for index page status?). It'll take years for anything to come of it...if anything ever does. And even then... it may or may not mean the end of Daum's instant messenger.

but...er....so what?

I didn't know so many ppl around here were using it. ^^ (another score for Daum! haha!)

From what I gather anyway, the big MSN pull for Koreans is not whether its pre-installed or not... its the funky MSN character avatar packs that everyone here is gaga for.

Now, if you wanna talk about BuddyBuddy (HUUUGE chat community in Korea) or what Daum is going to do about its PPC partner Over Korea vs Google Korea or even Zingu.com (local Korean PPC company) in the future, then we got some juicy conversations. ^^


 12:05 am on May 19, 2004 (gmt 0)

Just so we all know...who has the biggest IM share in the Korean market?


 7:21 am on Jun 11, 2004 (gmt 0)

oh oh...looks like something is happening in this case:
link [activewin.com]
South Korean regulators searched the offices of Microsoft Corp.'s local subsidiary on Thursday to investigate allegations that the U.S. software giant violated trade regulations by tying its instant messenger software to its Windows operating system.


 12:04 am on Jun 14, 2004 (gmt 0)

Here's another link [theinquirer.net] to a similar article. That first one looked like a blog ;)

Is this one getting treated a bit more seriously than previously expected, or are they just going through the motions? Is this big news in Korea?

GrendelKhan TSU

 2:21 am on Jun 16, 2004 (gmt 0)

hey! whoa... I've been slackin!

lol. Well, I haven't looked into it much, but again, I'll stick to original idea: going through the motions.

I haven't seen a single bit of major news on this.

however, msn has taken over as largest messenger service here. Daum and buddybuddy are the other two most popular. BuddyBuddy is making a bit of a comeback.

again, the integration with window (which is everyone's complaint of course) is tough to dislodge, but again...I think its more the extra feature and avatar stuff that won most ppl over. not really my area, so I'd have to look actively into it....but nonetheless.... I don't hear or see anything about this making any sort of major news here (even within "the industry").


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