Chinese regulator terms Microsoft media player, browser software sales in China “problematic”

26 Aug 2014

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The sales of Microsoft Corp's media player and internet browser software in China had been ''problematic,'' Reuters reported the Chinese regulator as saying.

The remarks were made by Zhang Mao, the head of the State Administration for Industry and Commerce, at a media briefing in Beijing in response to questions about an ongoing anti-monopoly probe into the technology giant.

He offered no details.

''Information relating to Microsoft's suspected Windows and Office software has not been fully open,'' said Zhang, the head of China's State Administration for Industry and Commerce (SAIC), said PC World reported.

Microsoft was under investigation on an industry complaint by the anti-trust regulator related to compatibility and bundling issues with the company's Windows and Office software.

Although the regulator had to yet elaborate on the specific problems, SAIC started raiding Microsoft offices in China last month, as part of its probe.

Even as SAIC claimed that Microsoft continued to withhold information, Zhang added that the US company had expressed it would respect Chinese laws and cooperate with authorities in their investigation.

Microsoft had earlier said that it was  willing to answer the government's questions.

Like in other parts of the world, Windows continued to be the top PC operating system in China, with a 90 per cent share, according to StatCounter, with around 40 per cent of those users still on Windows XP, an operating system that Microsoft officially retired earlier this year, ending its support for security updates.

In recent months, the Chinese government had moved to curb Microsoft's influence and in May, the country banned government purchases of Windows 8 devices. A state-controlled publication attributed it to security concerns.

SAIC's investigation comes as China opened other anti-monopoly probes against foreign companies, including car makers and US chip vendor Qualcomm. In the case of Qualcomm, the company had allegedly overcharge clients when licensing its patents.

SAIC had also warned earlier this month, in an online notice that Microsoft would need to follow China's law and not block its investigation.

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