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Microsoft gets 20 days to explain
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MICROSOFT Corp has been granted a 20-day deadline by a Chinese regulator to explain why it held back on its “not fully disclosed information” regarding Windows and Office suite sales.
The State Administration for Industry and Commerce has questioned Microsoft Vice President David Chen after visiting the offices of the world’s biggest software vendor and questioning staff in major cities including Shanghai since July in connection with a monopoly investigation of the company.
Microsoft has been suspected of violating China’s anti-monopoly law in relation to problems with compatibility, bundling and document authentication for its Windows operating system and Office software. The bundling of Internet browser and media player tools was also investigated, the SAIC said.
In June 2013, it investigated complaints from enterprises that Microsoft used tie-in sales and verification codes in its Windows operating system and Microsoft Office software suite, practices that may have violated China’s anti-monopoly law.
Verification codes are typically used by software companies as an anti-piracy mechanism. They are provided with legitimate copies of software and can be entered to entitle customers to updates and support from the manufacturer.
In a statement, Microsoft said it was “serious about complying with China’s laws and committed to addressing the SAIC’s questions and concerns.”
Satya Nadella, Microsoft’s chief executive, will visit China this month to discuss the issue with the government, media earlier reported.
US chip designer Qualcomm Inc and German automaker Mercedes-Benz are also facing similar investigations.
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