The country’s investigation into Microsoft may be targeting its “monopoly” of the Chinese OS market, after the software giant became the latest foreign company to go under Beijing’s scrutiny.


As for Microsoft, the company confirmed in a statement that it was under investigation in China, but the company’s representatives didn’t disclose any details. They claimed that the only aim of Microsoft is to create products that deliver the features, security and reliability customers need, and it will address any concerns the Chinese government may have.

The inquiry in question came after Windows 8 OS was banned on all new computers of the Chinese government amid reports alleging security concerns. Two months ago, the United States has also indicted 5 members of a Chinese military unit for allegedly hacking US companies for trade secrets. According to media reports, in result of all these moves, the officials of China’s State Administration for Industry and Commerce have visited Microsoft offices in Beijing, commercial hub Shanghai, Guangzhou and Chengdu city.

The industry experts estimate that Microsoft’s OS software occupies a 95% share of the Chinese market, which in fact forms a monopoly. One of the employees of Microsoft China admitted that the visits were linked to the Microsoft’s monopoly in China’s operating system market. However, the name of that employee was not revealed. In the meantime, another industry source was quoted as tying the case to the company’s practice of bundling its products together for sale.

The officials of China’s State Administration for Industry and Commerce refused to comment the issue thus far. However, the industry observers confirm that the software giant has previously faced anti-trust investigations in other markets for tying its OS to other products.

For example, Microsoft was fined $731 million by the European Commission back in 2013 for failing to offer users’ browser choices beyond its own Internet Explorer, which is increasingly losing its market share. It is also known that since 2013, China has launched a sweeping investigation into alleged wrongdoings by foreign companies in a number of business sectors, including the pharmaceutical and milk powder industries.