The Fair Trade Commission said it has launched an on-site investigation into allegations that Microsoft (MS) engaged in tying by bundling its artificial intelligence (AI) chatbot "Copilot."
Ju Biung-ghi, Chairperson of the Fair Trade Commission, said at the National Policy Committee's audit on the 14th, in response to a question from People Power Party lawmaker Ryu Young-ha, "We recently conducted an on-site investigation."
The Fair Trade Commission is examining whether MS's practice of selling its computer operating system (OS) "Windows" lineup combined with the AI chatbot "Copilot" constitutes tying (bundled sales).
The Chairperson said, "We are closely reviewing whether the law has been violated," adding, "Expanding market share and raising prices through tying are classic routes to higher profits, and we will carefully review this issue."
With the recent spread of artificial intelligence services, the Fair Trade Commission has made the potential abuse of market dominance by global big tech corporations a key inspection task. The on-site investigation is said to have begun after preliminary monitoring and internal review that have continued since May this year.
The Chairperson also said at the audit that an investigation is underway into the "Myeongnyun Jinsagalbi" case, in which alleged violations of the Franchise Business Act have been raised. The allegation is that Myeongnyundang, which operates Myeongnyun Jinsagalbi, ran a structure in which it lent startup funds to franchisees at mid-10% high interest rates through a related-party lending company.
He emphasized, "We are closely examining whether there were violations regarding omissions of key information such as interest rates of partner financial institutions in the disclosure document and false entries," and added, "We will thoroughly investigate not only violations of the Franchise Business Act but also unfair support and private interest seeking using financial institutions."