On Tuesday one of China's regulators said that China is demanding answers with regard to Microsoft's business practices there.
The new scrutiny of Microsoft by the State Administration for Industry and Commerce has stanched from several antitrust investigations of major Western tech companies way back 2014.
It can be recalled that on July of 2014, more or less 100 SAIC officials showed up in four Microsoft offices in China, asking questions, copying confidential information such contracts and records, and downloading data such as emails and internal communication from the company's servers.
According to analysts, Microsoft's difficulties in the country began when the company decided to end support and security updates for Windows XP. This move has forced the country to rely on the American company. The end was made with the hopes that the Chinese Microsoft users would upgrade to newer versions.
This has resulted in Microsoft being criticized for ending support in favor of its newer software.
Xinhua released an article on Tuesday stating that "Microsoft was suspected in 2014 of causing computer compatibility problems by not fully disclosing information about its Windows operating system and Microsoft Office suite of applications." The article further cited that the Chinse law states that "incompatibility without advance warning to customers could be regarded" as being anticompetitive.
A Microsoft spokesman, whose named is not disclosed due to company policy, said that they are serious in terms of "complying with China's laws and committed to addressing SAIC's questions and concerns."
Meanwhile, Information Technology and Innovation Foundation's Mr. Atkinson predicted that the Chinese regulators could actually use a case against Microsoft to force concessions that could include requiring the company to bring back the support for Windows XP PCs.
On the other hand, Mr. Atkinson is positive that the Chinese leaders would like to see local alternatives to Windows to lead in the market. "I think the strategy is essentially what I term de-U.S.A.," he said.
