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Microsoft experiences a new antitrust inquiry in China


A technology summit meeting was held months ago at the company’s headquarters near Seattle, along with certain most powerful political leaders of China, which was hosted by Microsoft’s chief executive Satya Nadella. A photo of him was taken while surrounded by the country’s president Xi Jinping, and its Internet czar Lu Wei.   

Despite of the neglected agreement, a Chinese authority is claiming for an answer to a new set of questions regarding the business practices of Microsoft.  

It appears that the announcement linked to electronic data which was collected in an antitrust inquiry, indicates how the Microsoft significant effort has done little in discharging China’s leadership in terms of the regulatory threat that the country is experiencing now. Meanwhile, the company is receiving mixed messages at best.  

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Furthermore, multinational companies declined from getting favors with leaders in China, one of the largest technology worldwide and consumer markets. It is run by regulatory agency competitors which exert efforts in winning against foreign companies with high-profile. The difficulty of Microsoft in the country is higher rates on software piracy, which significantly limits sales despite Windows and Office products are dominantly used. 

The investigation held on Microsoft raised concerns on certain past Western critics, which claims that China used their regulatory agencies and court system to put charges on foreign companies and allows homegrown alternatives.

Robert D. Atkinson, the president of the Information Technology and Innovation Foundation – a nonprofit research group in Washington said, “This is about business — that’s all it is,” He added, “All this other stuff about hosting and being nice doesn’t fundamentally change the Chinese calculation. This is the strategy they have, and they’re going forward pretty relentlessly.”

Qualcomm was penalized last year for violating China’s antimonopoly law and paid a fine of $975 million. Moreover, Volkswagen and Chrysler violated the antitrust rules and paid as well a fine worth $46 million in 2014.  

The new Microsoft’s investigation by the authority, the State Administration for Industry and Commerce also known as SAIC. It is a stem from antitrust investigations of most Western tech companies in 2014. 

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Four Microsoft offices in China were disturbed by 100 SAIC officials in July that year, which questioned executives, copied their contracts and records, and retrieved data from servers used by the company which includes email and other internal communications. 

The Chinese authorities were looking for answers on “major questions” that raised concerns about the data, but declined to give further comments on the investigation. According to analysts, Microsoft started struggling in 2014, when the company ended Windows XP’s support and security updates. It is a 14-year-old operating system made for users with hopes to replace the existing ones by upgrading to Windows 10, along with other more secured operating systems.

As most of the Chinese companies as well as government offices used old versions of Microsoft software such as XP, it appears that the country has greater reliance on the American company. Regardless of the fact that many Chinese users of Microsoft software purchased pirated versions without paying a single penny on Microsoft, the company was still criticized for the decision on ending their support and security update for a new version of software.  

In another news article, China’s state-run news agency Xinhua stated that Microsoft was alleged in 2014 about computer incompatibility which Microsoft did not fully provide disclosing information regarding their Windows operating system and Microsoft Office suite applications. The article said, “According to Chinese law, incompatibility without advance warning to customers could be regarded” as being anticompetitive.

As Microsoft experiences a new antitrust inquiry in China, tons of investors will likely watch out for signals about this company stock. You too can earn bigger profits and execute better trades here at Trade12 by reading the latest market updates on our official website, Trade12.com. Striving to become the best forex broker for you, Trade12 reviews daily market events essential to your trading activities to help you develop a keen understanding of certain trends involving stocks, currencies, indices, commodities, and metals. With all the positive Trade12 feedback from clients, you will be assured that your trading account is safe and secured.

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