Microsoft faces Windows ban in Korea

Korea's population of 50 million is estimated to account for less than one per cent of Microsoft's worldwide sales, but the country has been an important test-bed for next-generation communications technologies because of widespread early adoption of broadband and sophisticated mobile services.

The Korean case may inspire similar action elsewhere. Microsoft has faced multiple antitrust-related legal battles in the US and Europe, and Asia is shaping up to be the next battleground.

"With the European Union also pushing for further unbundling this is incremental pressure on Microsoft," said Mike Davis, senior research analyst with the Butler Group.

In 2003, trade regulators in Taiwan forced Microsoft to cut its software prices by 26 per cent after claiming that the company abused its market dominance to increase prices. 

Japan's Fair Trade Commission last year accused Microsoft of violating the country's anti-monopoly act, and called for the company to alter its business practices. 

Microsoft immediately denied the charges, and the commission has made no further public statements on the matter.

In Singapore, the company asked for a draft anti-competition law to be changed last year. Antitrust allegations have also been made against Microsoft in several other countries. 

"Other nations that want to encourage their own software industries may wish to take similar actions, but I do not see India being one of them as Microsoft is building up its investment there," said Davis.

"Maybe Microsoft has bought itself some 'insurance' in China by having one of its five research labs based in Beijing."

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