Tue, 08/26/2008 - 19:06
China to investigate Microsoft under new Anti-monopoly Law
by Chen Shasha
Shanghai. August 26. INTERFAX-CHINA - Microsoft is to be investigated under China's new Anti-monopoly Law, which took affect at the beginning of August, a lawyer told Interfax on Aug. 26.
Dong Zhengwei, a lawyer with Zhongyin, one of China's largest law firms, said he lodged a complaint against Microsoft with the Ministry of Commerce (MOFCOM), State Administration of Industry and Commerce (SAIC), and National Development and Reform Commission (NDRC) on July 31.
On Aug. 21, he received notice from MOFCOM that anti-monopoly investigations would be conducted by the NDRC and SAIC. The same day, the NDRC also notified him that his complaint would be investigated.
MOFCOM, the SAIC and NDRC are the three government bodies authorized by the State Council to investigate companies under the country's Anti-monopoly Law.
"Microsoft is conducting harmful trading in China, such as combining products with its Windows operating system. This violates consumers' rights to choose different products," Dong said.
"In addition, Microsoft sells its products in China for the same price as it does in the United States, which is higher than similar Chinese products, evidence of its monopolistic intentions," he said.
According to Dong, under article 38 of the new law, the three government bodies are obliged to start investigating a company soon after receiving a complaint. Individuals or companies making allegations under the law must provide evidence to support their claims.
On Aug. 26, Microsoft China president Zhang Yaqin told China Business News that, although Microsoft accounts for a large market share in China, the majority of its products are pirated, meaning that legitimate Microsoft products are not dominant. Zhang also said that Microsoft sells its products for a low price in China.
However, Dong said that he has evidence that legitimate Microsoft products have a majority of the market share in China, and that outside of sales seasons, its products are mainly priced highly.
