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    Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Korea Fair Trade Commission clears Oracle of unfair bundling practices, (Apr 13, 2016)

    Organizations Mentioned:Oracle | Oracle Corporation

    By Linda O’Brien, J.D., LL.M.

    The Korean Fair Trade Commission (KFTC) has concluded that Oracle Corporation did not engage in anti-competitive conduct following an investigation over the company’s practice of packaging new software upgrades into database management service ...

    By Linda O’Brien, J.D., LL.M.

    The Korean Fair Trade Commission (KFTC) has concluded that Oracle Corporation did not engage in anti-competitive conduct following an investigation over the company’s practice of packaging new software upgrades into database management service contracts, according to several news reports.

    Oracle Corporation is a multi-national computer technology company, headquartered in Redwood Shores, California. The company specializes in developing and marketing database software and technology, cloud engineered systems, and enterprise software.

    The KFTC began an investigation into Oracle’s practice of packaging new software upgrades into database management service contracts to determine whether the company was using its dominant market position to hinder competition.

    The Commission determined that software upgrades and maintenance were key components of the overall service provided by Oracle, and packaging them together did not restrict competition. The practice also did not result in any increase in prices.

    Oracle also was cleared of anticompetitive conduct regarding its practice of requiring a maintenance contract for all of the firm's software used by its customers. The requirement was necessary to protect its intellectual property, as various patches and upgrades offered through the agreements could be easily copied and applied. Customers could choose other vendors if they did not want to sign such an agreement, the KFTC found.

    "After a wide-ranging investigation of several years and two full days of hearing, we are pleased that the Commission has categorically rejected the allegations of abuse of dominance and unfair trade practices concerning Oracle support policies presented in the KFTC Examiner's Report,” the company said in a statement released today. “We appreciate the careful deliberation, wisdom and sound judgment of the Commissioners in reaching their decision."

    Companies: Oracle Corporation

    News: Antitrust

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