UPDATED 07:00 EDT / SEPTEMBER 01 2014

China turns up the heat in Microsoft antitrust probe

FlamethrowerChina’s anti-trust regulator has deepened its probe into Microsoft Corp., giving the company twenty days to reply to queries regarding the compatibility of its Windows and Office software products

Reuters is reporting that the State Administration for Industry and Commerce (SAIC) interviewed Microsoft Vice President David Chen last week, and has now given the firm a deadline to answer its questions.

“[A] special investigation team conducted an anti-monopoly investigation inquiry with Microsoft Vice President Chen Shi (David Chen), and required that Microsoft make a written explanation within 20 days,” the SAIC said in a statement on its website.

SAIC’s investigation into Microsoft was opened last month, when the regulator announced that it was concerned about sales of Microsoft’s Internet Explorer browser and Windows Media Player. It said that sales records were “problematic” in an earlier statement.

Microsoft has been accused of breaking anti-monopoly laws in China regarding the compatibility, bundling and document authentication used within its Windows and Office products. Last month, Chinese authorities carried out a raid on Microsoft’s offices in China, and the firm reportedly refused to cooperate willingly.

The antitrust probe is similar to that which Microsoft faced in Europe more than a decade ago, but questions have been raised about why China is so concerned now, when Microsoft’s star appears to be on the wane given the popularity of operating systems from Apple and Google.

Other reports suggest that something more sinister is going on, and that China is determined to rid itself of its reliance on Windows. The world’s most populous nation has made a lot of noise about developing its own home-grown operating system in recent weeks, and was apparently extremely unhappy with the way Microsoft dropped support for Windows XP earlier this year.

China is also somewhat skeptical of US-made technology in general, thanks to the disclosures of ex-NSA contractor Edward Snowden on government surveillance.

Microsoft isn’t the only company to come under the scrutiny of China’s anti-trust regulators. Reuters reports that similar probes have been launched into chip maker Qualcomm Inc., and automaker Mercedes-Benz. Qualcomm is suspected of anti-competitive business practices, while Mercedes-Benz is being investigated for fixing prices.

This development comes as Microsoft CEO Satya Nadella is expected to travel to China this month, his first visit to the country since taking over the top job. It’s unclear if his visit has anything to do with the current probe into the company.

photo credit: hunterseakerhk via photopin cc

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