China subjected Microsoft Corp. in an ivestigative probe on its violation of anti-monopoloy law. They're expected to offer an explanation in twenty days.
The State Administration for Industry and Commerce (SAIC) posted Tuesday the twenty-day deadline in an official notice demanding to company to offer a written explanation. They're expected to submit the explanation regarding the queries about the compatibility of the companies' Windows operating system and Office software.
The SAIC are currently investigating Microsoft's vice president and senior managers.
Chinese companies raised complaints on Microsoft's verfication codes, according to a state media report filed Monday. The Xinhua news agency said that the use of the codes probably violates the country's anti-monopoly law.
These codes are typically used by licensed software to prevent piracy. Original copies of the software include the verification codes which entitles the users to updates on the product and technical support from the manufacturer.
Piracy has been one of Microsoft's largest pitfalls in China. It's reported that the company made less revenue in the mailand than in the Netherlands.
"How does an anti-piracy measure constitute monopolistic behavior if other suppliers can also use the same technique?" said Duncan Clark from a Beijing-based technology consultany.
The Anti-Monopoly Law of China prohibits agreements between business and trading partners that contain certain restrictions on their competition. The law prohibits restrictive agreements and the domination of a market. It also prevents mergers that limits competitors. The government started implementation of the law in 2008.
There are at least 30 foreign companies, including Microsoft, under the scrutiny of anti-monopoly regulators. Critics of the law insist that the country target overseas business, which the regulators deny.
According to Reuters, Microsoft has been targeted by the anti-monopoly regulators since 2013. The company insisted that they're serious in following China's regulations.
Satya Nadella, Microsoft's CEO, is expected to arrive in the country later this month.
