China

UPDATE: SAIC Warns Microsoft $MSFT Not To Intervene in Investigation for Alleged Monopoly

This article was originally published on August 4, 2014 at 11:45 pm

Summary:

  • The State Administration for Industry and Commerce (SAIC) has warned Microsoft (US: MSFT) not to intervene in its investigation into an alleged monopoly, as reported by Beijing Times.
  • The regulator has talked to Microsoft’s VP Mary Snapp and asked the company to cooperate.

Why It Matters:

  • The article suggests that if the SAIC did not warn Microsoft, Microsoft may intervene in the investigation process. The Beijing Times indicated that during the investigation Microsoft was likely to prevent the SAIC from talking to some staff by saying they were out of the country or couldn’t be reached.
  • The SAIC commenced its investigation into Microsoft last week, allegedly due to the fact that Microsoft ceased supporting its Windows XP operating system this year putting 200 million computers in China at risk. At the same time the company increased the sale price of its Windows 8 and China’s media claimed that Microsoft was abusing its monopoly position.
  • The regulator’s attitude may also be influenced by Microsoft’s labor issues. Microsoft plans to lay off 90% of its staff at Nokia’s (US: NOK) research center in Beijing and last week over 100 workers gathered outside the office to protest.

Referencing: [SGI] UPDATE: Microsoft (MSFT) May Face Huge Penalty Over Monopoly