FTC starts investigation on whether Microsoft is illegally monopolizing the market

To respect intellectual property rights, the Ministry of Justice took the lead to sign an agreement with Microsoft for purchase of genuine software.  However, general consumers disagree with Microsoft’s doing of gaining considerable profits by selling software at high prices. The legislators of People First Party filed a complaint with the Fair Trade Commission (“FTC”) in early May to accuse Microsoft Taiwan of monopolizing the market for computer software, abusing its advantageous position on the market and maintaining improper prices for software products. After the complaint  called extensive attention from outsiders, the FTC immediately set up an “ad hoc committee to investigate the issue of monopolizing the software market” for investigation. Whether Microsoft gains improper profits by the advantageous position of monopoly must be decided based on the degree of available evidence obtained through investigation. In the future, the investigation will cover the following four points: 1. whether the height of prices is distorted; 2. whether the company improperly determines prices by monopolizing the market; 3. whether the company affect the market by its economic power; and 4. how to protect consumers’ rights and at the same time respect intellectual property rights. However, the FTC officials admit that it will be very difficult to prove the connection between the two sides.

Source: China Times 05/20/2002