Microsoft given 20 day deadline in China probe

Microsoft given 20 day deadline in China probe

Microsoft has been given a 20-day deadline to respond to concerns from China's SAIC regarding its position as a potential monopolist in the country.

Microsoft has been given twenty days to respond to concerns from a Chinese regulator that its actions in the nation have amounted to anticompetitive behaviour and that the company is acting as a de facto monopoly.

Microsoft has been suffering from a one-step-forward two-steps-back dance in China of late. News that it would become the first console maker in 14 years to sell a games machine in the country was a positive, but came on the heels of a report that the Chinese government was refusing to accept tenders to install Windows 8.1 as part of its upgrade cycle. More seriously, in July Microsoft was accused of running an illegal monopoly in the country, with the nation's regulators raiding Microsoft offices in Beijing, Shanghai, Ghuangzhou and Chengdu to gather evidence as part of a probe into its activities.

Now, Microsoft's David Chen has been given a series of questions by the regulator along with a deadline for when a response must be given. '[The] SAIC task force on Mr. Chen Shi [David Chen], vice president of Microsoft, in its anti-monopoly investigation and inquiry, require Microsoft to [...] make a written explanation within 20 days.' a spokesperson for China's State Administration for Industry and Commerce (SAIC,) the regulator overseeing the investigation, explained in a website posting on the matter.

The exact nature of SAIC's complaint remains unclear, but newswire agency Reuters has claimed a large portion stems from Microsoft's use of licence codes that tie the Windows operating system to each PC, along with concerns about the compatibility of its latest software - including Windows 8.1, itself something China has indicated it will not be adopting for governmental systems. Reuters has also indicated that there is concern that the anti-trust law is being used to cripple foreign companies in an attempt to give an advantage to local enterprise, although this is as yet unproven.

Microsoft has stated that it is 'committed to addressing SAIC's questions and concerns.'


Discuss in the forums Reply
andrew8200m 2nd September 2014, 13:41 Quote

China moaning about license codes.. what do they expect, buy one license and install it on the entire nations PCs? Ok, that's a little extreme and a heavy focus on one point but as a country they are incredibly backwards. They have some of the most intelligent people on the planet yet the common sense of a toddler. This is nothing short of an superb effort at showing the world how truly clueless they as a nation can sometimes be.

On the other side of the coin... Why does everyone need to upgrade to windows 8.1? Why isn't windows XP sufficient? If it isn't broken then why fix it? Why force a fix and an upgrade by stopping the support of software and hardware to XP and forcing a push over to the more modern OS?

When will Windows 7 see the same fate?

When will China complain about Apples monopoly, there frightening use of patents and the fact people are dying in the factories from suicide? (oh wait.. its an income to Foxconn, one of the largest manufaturers in the world of IT finished goods with a huge plant in south China)...

When will Linux be forced upon the courts for being FREE?

When will all brands of everything be banned from sale in China because they have decided they want to make knock off versions of said products without any regard for he company they are ripping off?

When will China stop and realise that the world isnt against them and that there isn't a need for looking over ones shoulder constantly?

Either way.. a waste of time which ever way you look at it.
Corky42 2nd September 2014, 14:39 Quote
Originally Posted by andrew8200m
Why isn't windows XP sufficient?

Because it's no longer receiving updates so is vulnerable to attacks.
Originally Posted by andrew8200m
When will Windows 7 see the same fate?

January 14, 2020.
andrew8200m 2nd September 2014, 16:43 Quote
Originally Posted by Corky42
Because it's no longer receiving updates so is vulnerable to attacks.

January 14, 2020.

It was rhetorical on both counts. But I see where the Chinese are coming from, why should they revamp an entire country on hundreds of thousands if not millions of government PCs to a later OS when XP has been sufficient.(the cost of the win8.1 licensing) Its a forced multi billion dollar bill that if support remained would be avoided.

Flip side to that argument is that the cost of windows XP times however many they sold divided by man hours maintaining the OS is probably at a point now where the profitability will start to plateau and then hit a negative hence the ending of its working life and supported life.

Instead of running win8.1 on everything I think in this instance Microsoft should perhaps have a dev team to support XP in china to maintain vulnerability's for a number of years agreed to avoid the law suits etc at a cost obviously to China for Microsoft to deem it feasible but at the same time not too expensive that a change to OS would have yielded similar results for a similar price.
Blackshark 2nd September 2014, 19:31 Quote
Well because the licences, when purchased, either with a new pc or afterwards stated clearly that the product would not be supported forever. I do not remember if MS released the end of life date for XP on its release, but I think they did.

No leg to stand on. But for a country that prides itself on doing what it likes, without recourse even to its own laws, we should not be surprised.
Anfield 2nd September 2014, 20:18 Quote
Large organizations (regardless if governments or private companies and regardless of where in the world) refusing to adopt Windows 8 is nothing new, too expensive to adapt any proprietary software used and train users for it.

Microsoft a monopoly? No way of denying that 90%+ Marketshare on Desktop PCs is a monopoly.
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