Menu
Oracle faces antitrust probe in South Korea

Oracle faces antitrust probe in South Korea

Maintenance contracts are at issue -- in particular, what software is included

In the past, South Korea's antitrust body has trained its sights on the likes of Google and Qualcomm. Now, Oracle is the latest to draw the agency's ire, resulting in an investigation of the database giant for potentially anticompetitive behavior.

The investigation, which apparently has been under way for some time, reportedly focuses on Oracle's insistence that customers pay for maintenance services for all the Oracle software they use rather than choose different maintenance vendors.

"Companies usually employ many management systems scattered around its workplaces, so Oracle's practice of servicing all systems when one needs fixing can become a burden," Korea Fair Trade Commission secretary-general Shin Young-son told The Korea Herald.

Oracle declined to comment and the FTC did not respond to a request to comment for this story.

Results of the probe are expected to be released in June or July. A fine could amount to as much as three percent of sales, Shin said, according to the Korea Herald.

"Maintenance contracts have always been a significant -- and significantly profitable -- part of Oracle's business," said Charles King, principal analyst with Pund-IT, in an email interview.

The company also has a history of acting aggressively toward organizations it believes are infringing on its turf, as evidenced by lawsuits it has pursued against third-party maintenance players, he said.

"These points might be factors in the Korea investigation, but the larger issue is likely one faced by every global vendor: Practices considered a common part of business in one country or locale might be considered uncommonly onerous in another," King said. "In order not to run afoul in such situations, a wise vendor will correct its course to avoid potential dangers."

Oracle may have failed to pursue that strategy in Korea, he added, so "it's worth considering whether the company faces similarly rough waters in other markets."

Subscribe here for up-to-date channel news

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags antitrustlegalsoftwareOracle

Featured

Slideshows

StorageCraft celebrates high achievers at its inaugural A/NZ Partner Awards

StorageCraft celebrates high achievers at its inaugural A/NZ Partner Awards

Revealed at a glitzy bash in Sydney at the Ivy Penthouse, the first StorageCraft Partner Awards locally saw the vendor honour its top-performing partners with ASI Solutions, SMBiT Pro, Webroot, ACA Pacific and Soft Solutions New Zealand taking home the top awards. Photos by Maria Stefina.

StorageCraft celebrates high achievers at its inaugural A/NZ Partner Awards
Kiwi resellers make a splash on Synnex and Lenovo RotoVegas road trip

Kiwi resellers make a splash on Synnex and Lenovo RotoVegas road trip

​Synnex and Lenovo hosted 18 resellers for an action-packed weekend adventure in RotoVegas, taking in white water rafting on the Kaituna River, as well as quad biking and dinner at Stratosfare​, overlooking Lake Rotorua at the top of Mount Ngongotaha​. Photos by Synnex.

Kiwi resellers make a splash on Synnex and Lenovo RotoVegas road trip
Show Comments