14 DAY TRIAL // China is becoming a really hostile market not only for Microsoft, but also for other American firms, as local authorities have started anti-trust investigations that appear to put local firms in a good light and thus support them as they struggle to boost market shares.
Redmond-based software giant is one of the companies that are investigated right now, with Chinese officials banning Windows 8 on government computers and raiding several offices to seize documents and conversations that could be used as evidence during the probe.
But despite the growing tension between Microsoft and China, the country’s anti-trust bodies claim that both local and foreign companies are treated equally and all investigations are based on real facts.
In a statement released today, Chinese officials explain that investigations are entirely conducted based on laws and despite reports, foreign companies aren’t treated unfairly.
Company officials forced to admit guilt
Reports coming via Chinese sources indicated that in some anti-trust probes targeting American firms, representatives of these companies were forced to admit guilt and plead without a lawyer to defend their rights.
Chinese authorities, however, suggest that all these reports are actually fake and every investigation complies with local legislation.
“Our anti-trust enforcement work is strictly conducted according to regulations,” said Xu Kunlin, director general of the National Development and Reform Commission's (NDRC) Price Supervision and Inspection and Anti-Monopoly Bureau.
“It is fair and transparent. It is not targeting any market player, and of course, it is not targeting any foreign invested or foreign enterprises.”
Microsoft given 20-day deadline to explain issues
Microsoft is one of the companies that are being investigated right now, and people close to the matter said that, after raids, some Redmond officials were asked by prosecutors to give statements without first contacting their lawyers.
The company hasn’t commented on such reports until now, but Xu says that China has already discussed with involved companies on these allegations, pointing out that all investigated firms have denied reports and have said that no factual basis exists.
“We asked some of the companies we were investigating about the criticism in these reports. The companies told me they didn't know why they would issue these kinds of statements. They said they didn't make those criticisms and they didn't represent their opinions,” Xu adds.
“Our communication with all of the companies we are investigating is extremely free-flowing.”
Microsoft is reportedly investigated for its failure to disclose all compatibility issues of Windows and Office, so the company has been given a 20-day deadline to provide an explanation.