Microsoft Could Face China Antitrust Probe

Microsoft could be the next major US technology firm to be investigated by Chinese anti-trust authorities after government officials paid unexpected visits to the Redmond, Washington-based firm’s offices in the country.

Representatives from China’s State for Administration for Industry & Commerce (SAIC) reportedly visited Microsoft’s offices in Beijing, Shanghai, Guangzhou and Chengdu, events which the company confirmed to Reuters.

The SAIC is responsible for market supervision and regulation is one of a number of Chinese government agencies that deal with antitrust issues. The National Development and Reform Commission deal with issues related to pricing, while the Ministry of Commerce investigates proposed mergers and acquisitions.

Microsoft in a China shop

Microsoft has not revealed any details regarding the visits, simply stating that it was happy to discuss any of the regulator’s concerns.

China has targeted a number of US firms in anti-trust investigations in recent months as business relations between the two countries continue to sour, not least because of US allegations of cyber espionage by Chinese individuals and companies.

Chinese network equipment manufacturer Huawei is effectively locked out of the American public sector market because the US government fears the company is spying for China, while five members of the People’s Liberation Army (PLA) were charged in May for alleged cyber-espionage (but not arrested or extradited).

San Diego-based Qualcomm is also being investigated by Chinese authorities over claims that it is charging higher prices in China than it does in other countries and it could face up to $1 billion in financial penalties.

There have been suggestions however that the Qualcomm investigation has been fuelled by a desire to help local companies ahead of the rollout of LTE in China, or to keep the cost of networking equipment down.

If any charges are brought against Microsoft, it would be the latest blow for the company in China, where the use of Windows 8 on government computers is forbidden and where activists are complaining about disruption to the OneDrive cloud storage service.

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