Innovation and Competition in the Digital Network Economy

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.