Boston, MA 09/02/2014 (wallstreetpr) – The officials in China gave a 20-days deadline to Microsoft Corporation (NASDAQ:MSFT) to explain its stand on compatibility and bundling issues with the software. The deadline has further pressurized the company as it is already under the scrutiny of anti-trust officials regarding its business practices there.
Microsoft under Pressure as SAIC takes a Stringent Stand
The State Administration for Industry and Commerce (SAIC) in China demanded from the U.S. based software maker to explain issues such as incompatibility as well as other errors rooting out of lack of released information regarding Windows and Office software.
While releasing a statement on its official website yesterday, SAIC said that the deadline was issued in the meeting with personnel of Microsoft. The Vice President of company overlooking corporate affairs and legal issues in China, David Chen, was among many others who attended this meeting.
Response from Microsoft
In response to this news, Microsoft Corporation (NASDAQ:MSFT) said, “We strictly adhere to the relevant laws and rules in China and we have been actively cooperating with the SAIC’s investigation.”
SAIC’s Surprise Scrutiny
In the recent past, the Government of China has undertaken a range of surprise investigations at the offices of Microsoft. SAIC also said that it has already confiscated emails as well as other materials, while at the same time, announced to seek speaking with the Microsoft executives.
It must be noted that as China takes up six-year-old antimonopoly law enforcement, there are various other foreign businesses which are under the lens of anti-trust officials. QUALCOMM, Inc. (NASDAQ:QCOM) too is facing probe into the pricing strategies being followed and Microsoft Corporation (NASDAQ:MSFT) said that it would be co-operating in the investigation. In the meanwhile, a range of foreign luxury-auto makers face investigations into pricing of spare parts as well as after-market services.
Allegations on Microsoft
Xinhua News Agency, which is the state-owned media company in China, said yesterday that other businesses were accusing Microsoft Corporation (NASDAQ:MSFT) of using tie-in sales and verification codes with Office and Windows in such a way which tends to violate their country’s anti-trust law. SAIC officials recently also announced that they were looking into distribution pattern of Microsoft Media Player and Internet browser software.
