bit-tech.net

Microsoft under monopoly investigation in China

Microsoft under monopoly investigation in China

Microsoft's Chinese arm is under an active investigation for monopolistic practices, the details of which have not yet been made public.

Microsoft has confirmed that four of its premises in China have been raided in an investigation into alleged monopolistic practices in the region, even as the Chinese government looks to move away from the company's software products.

China is a technology growth area and a major earner for many companies, but Microsoft is currently battling hard to keep its foot-hold in the region. Its recent win in becoming the first company to sell a games console in the area for 14 years is tempered by the news that the Chinese government is forbidding the use of Windows 8.1 on its systems until alternatives have been thoroughly investigated.

Now, local paper the Shanghai China Morning Post has confirmed reports that Microsoft's Chinese operation is under active investigation amid claims it is running an illegal monopoly. Facilities in Beijing, Shanghai, Ghuangzhou and Chengdu have all been raided by teams from the State Administration for Industry and Commerce as part of its investigation of anti-trust practices.

Microsoft has issued a statement to the paper confirming the raids and stating it will 'actively cooperate' with the government's investigation, but at present neither Microsoft nor the Chinese state has released details of the allegations levelled against the company.

13 Comments

Discuss in the forums Reply
Umbra 30th July 2014, 12:19 Quote
Quote:
the news that the Chinese government is forbidding the use of Windows 8.1 on its systems until alternatives have been thoroughly investigated.

Actually means, we've already copied it (along with most products on the planet) and don't need to spend money buying the OS from MS, now get out of our country.
LordPyrinc 30th July 2014, 13:21 Quote
Do not pass go, do not collect 1234 yuan.... oh wait... you meant the other monopoly.
Pookie 30th July 2014, 16:12 Quote
They didn't need to raid an office to know that.
XXAOSICXX 30th July 2014, 16:18 Quote
Quote:
Originally Posted by Umbra
Quote:
the news that the Chinese government is forbidding the use of Windows 8.1 on its systems until alternatives have been thoroughly investigated.

Actually means, we've already copied it (along with most products on the planet) and don't need to spend money buying the OS from MS, now get out of our country.

I was just thinking the same thing. Given that China is the number one producer of pirated software - ESPECIALLY WINDOWS AND OFFICE - they've got a damn cheek complaining about ANYTHING M$ do.
Cheapskate 30th July 2014, 17:51 Quote
...All the wrong MS employees are going to be shot.:(
crazyg1zm0 30th July 2014, 18:02 Quote
I will be watching this story to see if it unfolds as i expect it might.

I do find it quite amusing that this is happening, the Microsoft office monopoly (we can all admit that there is one), Is not one that they created in any other way really other than being the best product for the job, I have yet to truly use a better product for word processing and what not that I like more.

But as someone have said above, this does seem like its china getting ready to essentially get rid of Microsoft, and replace it with a chinese company who have just cloned the software.

Im sure I saw somewhere that china have a great record of protecting Chinese companies and producers of products even if they are exact copies of already successful products, just so that they can not pay for something where the money wont stay in the country.
Nexxo 30th July 2014, 18:12 Quote
Quote:
Originally Posted by Cheapskate
...All the wrong MS employees are going to be shot.:(

:p


But seriously. Anyone else think that this is a proxy war for a secret intelligence conflict between the US and China?
crazyg1zm0 30th July 2014, 18:28 Quote
does sound like the beginnings of something like that.

First: Raid US companies under whichever legal guise will get us in.
Second: ........
third: victory
IvanIvanovich 30th July 2014, 18:37 Quote
Yes. It is exactly because of backdoors in the OS that China has banned Windows 8.x for official government use. But... this probably also applies to Vista, 2008, 7, 2012, and etc OS products made in that time period. Basically anything that has bitlocker as it is likely the backdoors have to do with that feature more than anything. Earlier Windows version probably didn't need a special backdoor since there was no real security there anyway. But this isn't really a big deal since I don't imagine any sane government is using Windows for anything sensitive computer systems anyway. That stuff is all *nix based.
As far as monopoly goes, Windows will always be a de facto monopoly until they open up the Win32/64 API (or someone successfully 100% compatibility reverse engineers it without using any MS code) and Office will also be a de facto monopoly until there are other choices that are also 'easy' to use and reliably can edit and save MS Office files again without blowing them up.
Corky42 30th July 2014, 18:57 Quote
Sounds kinda odd to say Microsoft still has a monopoly, last time i checked they only had a 14% market share.
rollo 30th July 2014, 19:12 Quote
Your including mobile as part of desktop marketshare?

Microsoft at last check has 90% desktop market share with Apple at 8% and others at 2%.

If you go the mobile route they need to raid google who have the monopoly. ( Andriod has around 80% market share last I bothered to look)

This is not even about market share this is to do with USA policy stuff.
Nexxo 30th July 2014, 19:31 Quote
Quote:
Originally Posted by IvanIvanovich
Yes. It is exactly because of backdoors in the OS that China has banned Windows 8.x for official government use. But... this probably also applies to Vista, 2008, 7, 2012, and etc OS products made in that time period. Basically anything that has bitlocker as it is likely the backdoors have to do with that feature more than anything. Earlier Windows version probably didn't need a special backdoor since there was no real security there anyway.

Earlier version of Windows existed before the Web became a thing. It was unlikely for any office PC to be hooked up to anything but an intranet.

I'm thinking more about how the US has been rather paranoid and vocal about using China-manufactured computer hardware for fear that its government has engineered back doors in it. This seems like a quid-pro-quo reaction. Given what we know about the NSA (thanks, Snowden!) and knowing that China's secret intelligence is conceivably even worse, I don't think it unlikely that there is a whole lot more going on behind the scenes than we are seeing.
Corky42 30th July 2014, 20:01 Quote
Quote:
Originally Posted by rollo
Your including mobile as part of desktop marketshare?

Microsoft at last check has 90% desktop market share with Apple at 8% and others at 2%.

If you go the mobile route they need to raid google who have the monopoly. ( Andriod has around 80% market share last I bothered to look)

This is not even about market share this is to do with USA policy stuff.

Sorry the article didn't mention what area China was claiming Microsoft had a monopoly in, my point was that China can hardly claim they have a monopoly can they ? I mean if it's only in one segment of the market is that a monopoly.

The 14% AFAIK is all devices combined, so it's desktop, tablet, and smart phones.

EDIT: Something that I've wasted much time on, and speaking of USA & China attacking each other.
http://map.ipviking.com/
Shows real-time attacks around the world (apparently) it can slow down the old browser a wee bit though.
Log in

You are not logged in, please login with your forum account below. If you don't already have an account please register to start contributing.



Discuss in the forums