CHINA TOPIX

11/22/2024 03:14:21 am

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'Antitrust Officials' Target Microsoft In China

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Microsoft became the newest company from the United Stated to be targeted by Chinese government officials for an antitrust investigation. This was confirmed by the unexpected visits to the software giant's Chinese offices.

Microsoft offices in Beijing, Chengdu, Guangzhou, and Shanghai were recipients of unscheduled visits by representatives of China's State Administration for Industry and Commerce, which is in charge of imposing business laws in the country.

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A spokeswoman from Microsoft said that the company was "happy to answer the government's questions," but refused to divulge any further details.

When asked about the visits, the Chinese government agency refused to comment.

The visits were quite possibly an antitrust investigation's initial stages, said a source close to Microsoft who wished to remain unnamed, according to The Telegraph.

Microsoft, if the allegations prove to be true, would be the one of the biggest U.S. corporations to be noticed by Chinese regulators as they increase their errors in an endeavor to safeguard native customers and companies.

The largest global manufacturer of mobile phone chips, Qualcomm, has fallen victim to such accusations of the antitrust probe. Allegations of overcharging and abusing its market position may lead to the company receiving penalties that may surpass $1 billion.

The price competition regulations and the implementation of the country's anti-monopoly law has strained business relations with China and the U.S. and agitated companies in the United Stated

"Concern among the U.S. companies are intensifying," the United States Chamber of Commerce said earlier this year as it urged the government to face China's use of the anti-competition regulations.

Business relations among the two countries have already been damaged over the issue that the U.S. were allegedly spying on China, according information disclosed by Edward Snowden, a former contractor of the United States' National Security Agency.

The investigation is an addition to the turmoil Microsoft is facing in the country. China's central government banned the installation of Windows 8, Microsoft's newest operating system, on computers.  Clients of Microsoft's OneDrive, a cloud storage service provided by the company, have also protested in early July claiming that the service was being disrupted in China.

Nevertheless, the company is proceeding with its intention of releasing its latest gaming console, the Xbox One, in China in September. 

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