Microsoft Corp, the world's largest software maker, had its Tokyo office raided by Japan's Fair Trade Commission as part of a probe into how it supplies Windows XP software for computers sold in Japan.
The investigation involves whether Microsoft's licensing of Windows XP software violated the country's anti-monopoly law, said a commission official, who declined to be named. Microsoft Japan spokesman Kazushi Okabe confirmed commission officials were at the office, adding that he didn't know why they were there.
Japan is the world's third-largest market for PCs, and sales for makers such as NEC Corp and Dell Inc will probably rise 6.5 percent to 13.7 million units this year, according to researcher IDC Japan.
PHOTO: AFP
Redmond, Washington-based Microsoft's effort to resolve an antitrust lawsuit regarding Windows XP in Europe is stalled on a dispute over music and video players.
"They've already been investigated in the US and in Europe, so it's not a surprise" to have an investigation in Japan, said Keichi Nakamura, who helps manage about US$1 billion in foreign equities including Microsoft at Dai-Ichi Mutual Life Insurance Co in Tokyo. "Microsoft is the dominant player and there is the fear other companies cannot break through because its programs are too common."
Windows XP, available in Japan since November 2001, is an operating system that is often preloaded by computer makers before sale. Such software is necessary for other programs such as Internet browsers or word processors to work on a computer.
The Tokyo raid "affects Microsoft's image but it's not a crucial issue," Keisuke Iwafuchi, an analyst at Okasan Securities, said. "Even if Microsoft was ordered to suspend operations in Japan temporarily, the damage would be limited."
The US company is under investigation by the European Commission, the Brussels-based regulatory arm of the EU, which accused Microsoft of illegally using Windows to control markets in operating systems for larger computers and for audio-visual software.
Microsoft faces millions of euros in fines as early as next month and the cost of court battles unless it can agree a compromise.
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