After Starbucks, GlaxoSmithKline, Apple, McDonald's and New Zealand dairy giant Fonterra, now it's Microsoft's turn to feel the pressure from China's consumer watchdogs.
Last week, government investigators raided Microsoft offices in four Chinese cities. The state administration for industry and commerce is probing Microsoft for antitrust violations, coming hard on the heels of a similar investigation into Qualcomm.
While the Beijing government says a rash of recent crackdowns on foreign firms was aimed at stopping abuses, critics allege China is using antitrust probes and other investigations to protect and bolster domestic firms.
The agency said Qualcomm, one of the world’s biggest mobile chipmakers, had used monopoly power in setting its licensing fees.
In May, China banned government use of Microsoft’s latest operating system, Windows 8, after the software giant ended support for the widely used Windows XP as part of efforts to introduce more secure and less easily pirated versions of Windows. Windows XP is used on more than half of Chinese desktop computers, and is widely pirated in China.
This latest setback will certainly jangle the nerves and try the patience in the boardroom in Seattle. Because of piracy, Microsoft reportedly earns less revenue in China than it does in the Netherlands, even though sales of computers in China have been as high as in the US.
