iTnews

Chinese competition regulators target Microsoft IE

By Paul Carsten on Aug 27, 2014 7:11AM
Chinese competition regulators target Microsoft IE

A beachhead for a broader investigation.

Microsoft's Windows web browser and media player are being targeted in a Chinese antitrust probe, raising the prospect of China revisiting the software bundling issue at the heart of past antitrust complaints against the firm in the West.

The Chinese State Administration for Industry and Commerce (SAIC) suspects Microsoft of not being fully transparent with information about its Windows and Office sales, but the company has expressed willingness to cooperate with ongoing investigations, Zhang Mao, the head of the antitrust regulator, told reporters at a briefing in Beijing on Tuesday.

As Windows became the world's dominant operating system in the 1990s and 2000s, the issue of how Microsoft bundled its web browser and media player became the focus of respective antitrust cases brought by U.S. and European authorities.

Microsoft settled in 2001 with the U.S. Department of Justice a long-running case centring around whether it could bundle its flagship Internet Explorer browser with Windows.

In 2004, the European Union ordered Microsoft to pay a 497 million euro fine and produce a version of Windows without the Windows Media Player bundled. The fine was later increased to nearly 1.4 billion euros.

China's focus on two products previously litigated elsewhere appears to form the basis of its investigation, but the probe could extend beyond the media player and browser bundling issue, said You Youting, a partner at Shanghai Debund Law Offices.

"It's possible the government hasn't been successful in finding what they're looking for," You said. "But by starting with these two products, it gives them time."

A Microsoft spokesman declined to comment when contacted by telephone.

The Microsoft investigation comes amid a spate of antitrust probes against foreign firms in China, including mobile chipset maker Qualcomm and German car maker Daimler's luxury auto unit Mercedes-Benz. The probes have renewed fears of Chinese protectionism.

The SAIC said earlier this month that Microsoft had been suspected of violating China's anti-monopoly law since June last year in relation to problems with compatibility, bundling and document authentication for its Windows operating system and Microsoft Office software.

The SAIC, one of China's three anti-monopoly regulators, formally announced its investigation into Microsoft's activities this month after officials raided Microsoft offices in several major cities and met Microsoft Deputy General Counsel Mary Snapp for questioning in Beijing.

"The investigation is presently ongoing, and we will disclose the results to the public in a timely fashion," Zhang said, adding that the probe is one of nine opened this year which include the software, tobacco, telecommunications, insurance, tourism and utilities sectors.

The companies involved in the nine investigations comprise domestic, foreign, state-owned enterprises and trade associations, Zhang said.

Got a news tip for our journalists? Share it with us anonymously here.
Copyright Reuters
© 2019 Thomson Reuters. Click for Restrictions.
Tags:
chinainternet explorermicrosoftsoftware

Partner Content

Security "mindset shift" needed to protect organisations
Promoted Content Security "mindset shift" needed to protect organisations
Alienated from your own data? You’re not alone
Promoted Content Alienated from your own data? You’re not alone
5 essential digital transformation ideas
Promoted Content 5 essential digital transformation ideas
Top 5 Benefits of Managed IT Services
Promoted Content Top 5 Benefits of Managed IT Services

Sponsored Whitepapers

Planning before the breach: You can’t protect what you can’t see
Planning before the breach: You can’t protect what you can’t see
Beyond FTP: Securing and Managing File Transfers
Beyond FTP: Securing and Managing File Transfers
NextGen Security Operations: A Roadmap for the Future
NextGen Security Operations: A Roadmap for the Future
Video: Watch Juniper talk about its Aston Martin partnership
Video: Watch Juniper talk about its Aston Martin partnership
Don’t pay the ransom: A three-step guide to ransomware protection
Don’t pay the ransom: A three-step guide to ransomware protection

Events

  • iTnews Benchmark Awards 2022 - Finalist Showcase
  • 11th Annual Fraud Prevention Summit 2022
  • IoT Impact Conference
  • Cyber Security for Government Summit
By Paul Carsten
Aug 27 2014
7:11AM
0 Comments

Related Articles

  • Microsoft to shut down LinkedIn in China
  • Microsoft to retire Internet Explorer in 2022
  • Heroku hackers got account passwords via OAuth token theft
  • Patch now against Linux 'Nimbuspwn' root priv-esc bugs
Share on Twitter Share on Facebook Share on LinkedIn Share on Whatsapp Email A Friend

Most Read Articles

NSW digital driver's licences 'easily forgeable'

NSW digital driver's licences 'easily forgeable'

NBN Co's 250Mbps and gigabit growth is finally clear

NBN Co's 250Mbps and gigabit growth is finally clear

Kmart Australia re-platforms ecommerce site to AWS

Kmart Australia re-platforms ecommerce site to AWS

NBN Co sizes up six-figure customer exodus a year to fixed wireless

NBN Co sizes up six-figure customer exodus a year to fixed wireless

Digital Nation

Lendlease launches its own metaverse in Milan
Lendlease launches its own metaverse in Milan
CTO Juergen Mueller offers a glimpse into SAP's metaverse play
CTO Juergen Mueller offers a glimpse into SAP's metaverse play
COVER STORY: Data and IoT set digital agriculture on a sustainable future
COVER STORY: Data and IoT set digital agriculture on a sustainable future
COVER STORY: A Year in the Metaverse
COVER STORY: A Year in the Metaverse
Why do DeFi and DAOs matter to business?
Why do DeFi and DAOs matter to business?
All rights reserved. This material may not be published, broadcast, rewritten or redistributed in any form without prior authorisation.
Your use of this website constitutes acceptance of nextmedia's Privacy Policy and Terms & Conditions.