China has launched an anti-monopoly investigation into US software giant Microsoft, and lawsuits by local companies could follow, state media reported yesterday.
China’s State Intellectual Property Office and some research institutions have targeted Microsoft and several other global software firms over suspected monopoly activities, the Shanghai Securities News said.
Firms will be organized to file lawsuits against the software giants after China’s debut anti-monopoly law comes into effect on Aug. 1, unnamed sources told the newspaper.
The probe by Chinese regulators focuses on operating systems and other software developed by international companies that cost much more in China than in the US, one source was quoted as saying.
“On one hand, global software firms, taking advantage of their monopoly position, set unreasonably high prices for genuine software, while on the other hand they criticize Chinese for poor copyright awareness. This is abnormal,” the source said. “With the anti-monopoly law in place, Chinese government and companies have the obligation and right to correct the situation.”
One set of the Windows operating system plus Microsoft Office software can cost up to 7,000 yuan (US$1,015) in China, making it more expensive than a personal computer, the source said.
A spokesman with Beijing-based Microsoft China was not immediately available for comment when reporters contacted the firm.
The State Intellectual Property Office could also not immediately be reached for comment.
China’s parliament passed the country’s first anti-monopoly law last year, sparking concern among US and European business groups.
The law requires that proposed mergers or takeovers of Chinese firms by foreign companies must be checked to ensure that they do not endanger national security or lead to monopolies.
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