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China’s government officials raid Microsoft offices

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Posted July 29, 2014

China’s dispute with Microsoft is still far from being over. In the newest development of a quarrel between the two, Chinese authorities raids several Microsoft offices.

Microsoft booth during the 2009 global consumer electronics and consumer technology tradeshow via Wikimedia Commons.

Microsoft booth during the 2009 global consumer electronics and consumer technology tradeshow via Wikimedia Commons.

Government officials have made sudden visits to Microsoft offices in Beijing, Shanghai, Guangzhou and Chengdu, South China Morning Post reports. According to China’s State Administration for Industry & Commerce (SAIC) it is conducting an anti-monopoly investigation, stating that Microsoft has not fully disclosed information about its Windows and Microsoft Office software.

In Microsoft statement, the company reassured that it is cooperating with SAIC officials. “We aim to build products that deliver the features, security and reliability customers expect,” the statement reads.

The U.S. based company does have a wide range of operations in China, Reuters reports. Those including development and research teams for various software products, such as Windows operating system. However, Microsoft revenues in China is comparably low. In 2011, because of piracy, Microsoft earned less revenue in China, market of 1.4 billion people, than in the Netherlands.

In May, Chinese authorities banned government institutions from using Windows 8, which followed the decision by Microsoft to end support for Windows XP. The Windows XP OS makes up 50 percent of China’s desktop market and is widely used by Chinese government departments. The Central Government Procurement Center stated that the ban supported the use of energy-saving products and ensured security, but it did not elaborated on how the ban supported the mentioned intentions.

Written by Aleksandr Ančiutin

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