Chinese authorities have given Microsoft 20 days to provide an explanation for a probe that focuses on the company's marketing strategy for its Windows and Office software.
The State Administration for Industry and Commerce, the country's antitrust regulator, still has concerns about what it claims to be Microsoft's inability to provide enough information regarding the compatibility of its OS and its software.
According to Reuters, officials handed down the ultimatum after questioning Microsoft Vice President David Chen. In a statement, the company ensured authorities that it will cooperate with the probe, saying that it was "serious about complying with China's laws and committed to addressing SAIC's questions and concerns."
The country's officials first targeted Microsoft late last July, when reports surfaced that SAIC personnel visited the company's offices in Beijing, Shanghai, Guangzhou and Chengdu. Less than a week later, authorities warned Microsoft against hindering its investigation. In a report, the SAIC warned Microsoft against doing anything to obstruct the probe. The agency handed out the warning in spite of admitting that the company had promised to "respect Chinese law and fully cooperate" with the investigation.
Another issue that the SAIC has raised is Microsoft's use of verification codes in its products. According to state-run Xinhua News Agency, companies in the country have complained about the codes, which Microsoft uses as an anti-piracy tool. The report said that the use of the codes "may have violated China's anti-monopoly law."
Duncan Clark of Beijing-based consultancy BDA told Reuters that claims that verification codes violate anti-monopoly laws can be considered illogical. This may be more so in China, considering how rampant media piracy is in the country.
"It's hard to make sense of and hard to see how Microsoft can appease," he said. "How does an anti-piracy measure constitute monopolistic behaviour if other suppliers can also use the same technique?"
Microsoft is just one in a growing list of multinational companies that have ended up on the crosshairs of Chinese business authorities. Last July, the National Development Reform and Commission announced that it is looking at bringing up antitrust charges against San Diego-based company Qualcomm for allegedly creating a monopoly in the country's mobile devices chip market.
