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Chinese Government Probes Microsoft For Breaches of Monopoly Law

DroidJason1 writes The Chinese government is investigating Microsoft for possible breaches of anti-monopoly laws, following a series of surprise visits to Redmond's offices in cities across China on Monday. These surprise visits were part of China's ongoing investigation [warning: WSJ paywall], and were based on security complaints about Microsoft's Windows operating system and Office productivity suite. Results from an earlier inspection apparently were not enough to clear Microsoft of suspicion of anti-competitive behavior. Microsoft's alleged anti-monopoly behavior is a criminal matter, so if found guilty, the software giant could face steep fines as well as other sanctions.

23 of 110 comments (clear)

  1. Pot - Kettle by Anonymous Coward · · Score: 4, Funny

    This is like being accused of overeating by the world's biggest fat man.

  2. So China is going to do by 0xdeaddead · · Score: 5, Insightful

    what the DOJ failed to do.

    1. Re:So China is going to do by sg_oneill · · Score: 2

      what the DOJ failed to do.

      Well not quite. The DOJ proposed splitting microsoft in half. Chinas solution to corruption tends to involve ventilating the CEOs brain with lead, 15 minutes after the judge declares "Fuck this guy!".

      The only one who seemed to be advocating caping bill G here was probably ESR, because ESR is kind of a mentalist (RMS doesnt do guns)

      --
      Excuse the Unicode crap in my posts. That's an apostrophe, and slashdot is busted.
    2. Re:So China is going to do by Khyber · · Score: 4, Funny

      RMS doesn't do guns because only one or two are open-source, and he's seen the code and knows they're shitty.

      --
      Still waiting on Serviscope_minor to wake up to fucking reality and realize that Jessica Price isn't going to fuck him.
    3. Re:So China is going to do by s.petry · · Score: 4, Insightful

      The DOJ did not fail to convict Microsoft of being an illegal monopoly, they failed to _PUNISH_ them after they were found guilty. Microsoft paid lobbyists to convince congress that breaking them apart (as was done with AT&T) would cause further economic collapse. Yeah yeah, so much for the separation of powers...

      It was not just the DOJ that failed to punish MS. Several states had similar successful trials where MS was found guilty, and the payout from MS was "free MS products for Education and Government" for N years ( in some cases 5 years ). I wrote numerous articles and papers back then explaining how this was not a punishment, but obviously a method of further entrenching their monopoly.

      --

      -The wise argue that there are few absolutes, the fool argues that there are no probabilities.

    4. Re:So China is going to do by rahvin112 · · Score: 2

      The trial phase of Microsoft was during the Clinton Administration. The Penalty phase took place during the Bush Admin and the US attorney was changed by the president. The new attorney threw out all the possible mitigation the previous US attorney had developed.

      Why Microsoft was never effectively punished should be obvious.

  3. I'm sorry to be the grammar Nazi... by Calavar · · Score: 4, Insightful
    ...but seriously, who writes this stuff?

    following a series of surprise visits to Redmond's offices in cities across China on Monday

    While I understand that this is metonymy, it's confusing as hell because at first read "Redmond's offices" == "Microsoft's offices in Redmond."

    1. Re:I'm sorry to be the grammar Nazi... by Anubis+IV · · Score: 2

      Agreed. I suspect they thought they were being clever in using it to refer to them in this context, but it's only a clever turn of phrase until it gets in the way of understanding it easily.

    2. Re:I'm sorry to be the grammar Nazi... by aNonnyMouseCowered · · Score: 2

      Technically you're style Nazi. Figures of speech aren't covered by grammar.

  4. Re:So... by Anonymous Coward · · Score: 2, Informative

    Huawei, ZTE, or Red Flag linux are all fine as 'monopolies',

    Except that none of these are monopolies. In fact, they are not even market leaders.

  5. Monopoly Claims Are Only A Cover Story by rsmith-mac · · Score: 5, Insightful

    Unsurprisingly, the monopoly claims are only a cover story for other policy issues with China. As TFA even points out:

    China confirmed it is investigating whether Microsoft Corp. broke its antimonopoly laws, the latest sign of growing commercial and policy tensions between the U.S. and China that are roiling technology companies in both countries.

    The investigation represents a new friction point between the countries following disclosures about U.S. National Security Agency surveillance and revelations of hacking of U.S. networks by China's military.

    "There's a digital Cold War going on between the U.S. and China," said Alvin Kwock, an analyst with J.P. Morgan.

    "The Chinese government has seized on using the [antimonopoly law] to promote Chinese producer welfare and to advance industrial policies that nurture domestic enterprises," the U.S. Chamber of Commerce, which represents major U.S. corporations,wrote in an April letter to federal officials.

    Unfortunately for Microsoft, they likely would have been better off actually breaking the law, because at least that would result in a trial over the truth (and some ill-gotten gains in the process). Instead, because this is a political maneuver by the Chinese, Microsoft is being used as a scapegoat here. Any resulting punishment for Microsoft will be based on the state of Sino-American relations and whether China wants to harm the US by proxy. Which given how things currently stand, MS is looking rather screwed.

    1. Re:Monopoly Claims Are Only A Cover Story by Nyder · · Score: 3, Insightful

      ...

      Unfortunately for Microsoft, they likely would have been better off actually breaking the law, because at least that would result in a trial over the truth (and some ill-gotten gains in the process). Instead, because this is a political maneuver by the Chinese, Microsoft is being used as a scapegoat here. Any resulting punishment for Microsoft will be based on the state of Sino-American relations and whether China wants to harm the US by proxy. Which given how things currently stand, MS is looking rather screwed.

      And most of us here feel really bad for MS getting fucked over, after they've fucked over so many others.

      I don't believe in karma, but if I did, this is a prime example of karma.

      --
      Be seeing you...
    2. Re:Monopoly Claims Are Only A Cover Story by Stuarticus · · Score: 3, Interesting

      Unfortunately for Microsoft, they likely would have been better off actually breaking the law,

      Who says they didn't? Your quote from the chamber of commerce (a business lobbying group, wonder where their interests lie) seems to imply they are using anti-monopoly laws to encourage competition, isn't that kind of the point?

      --
      If you think someone isn't free to have a different definition of "freedom" you may be a tyrant.
    3. Re:Monopoly Claims Are Only A Cover Story by jodido · · Score: 4, Insightful

      All the claims that this is "political" come from Americans, or are uncited. "The latest sign of growing...tensions" according to whom? "...a new friction point..." according to whom? "... said Alvin Kwock, AN ANALYST WITH J.P. MORGAN" [caps added by me]. How about what China thinks? I have no doubt Microsoft broke Chinese laws. Why should Chinese laws be different? And thereby set themselves up to be prosecuted.

  6. Screwing MS may be a Good Thing(tm) ! by Anonymous Coward · · Score: 2

    MS is looking rather screwed

    As no one has yet be able to screw MS since its inception, and as MS has screwed so many others throughout its own history --- it may be a good thing that MS finally getting that BIG SCREW that it so deserves !

  7. So ? by Anonymous Coward · · Score: 3, Funny

    So all six people in China who purchased software from Microsoft get a full refund and an apology?

    Sounds like a 'nothing to see here' storey to me.

  8. Bet Google is glad they got out of China years ago by TheEyes · · Score: 4, Insightful

    Frankly, anyone who does business in China should come to expect this. Stories abound about how Chinese companies "compete" with foreign companies in China: you wake up one day and find out half your manufacturing and IT infrastructure is "missing", some of which returns in a few weeks, and then three months later a new, Chinese-owned factory opens up down the street, making products that look exactly like yours minus the brand names and serial numbers, which just happen to have great contacts with the Chinese government so that factory ends up with all the lucrative government and commercial contracts while your company just continues to bleed money on its "China strategy".

    This is just the next step, for companies like Microsoft and Apple that rely on their brand to sell product despite having government-owned knockoffs everywhere. A foreign company managing to actually compete with an honest Chinese company? Why, they must be cheating. And we will find cheating, whether or not it exists, and take what's rightfully ours, that is, anything that ever touches Chinese soil.

  9. Re:The Chinese are playing... by The+Evil+Atheist · · Score: 3, Insightful

    It's much better than the traditional story of "Let this rich American company fuck with this other country because fuck it we're 'Murican".

    --
    Those who do not learn from commit history are doomed to regress it.
  10. Re:So... by Dutch+Gun · · Score: 5, Insightful

    I'll bet the Chinese government took a page from the EU and figured out it could levy whatever the hell sort of fines it wants against these tech giants, and they'll probably just eat it as a part of the cost of doing business. That is, so long as they don't fine them more than it's worthwhile to do business there, because of course, said company would simply say "screw you" and leave. They figured that a charge of "Microsoft is a monopoly!" would work just fine, since that's been bandied about in the West so much already. You watch - I wouldn't be surprised if MS is going to get a nice, hefty fine levied against them, but probably not so much that they'll contemplate pulling out of China's market completely. Nothing like a government-sponsored extortion racket.

    The other possibility is, like the linked article implies, that this is part of the government's push for technological self-reliance, and a move to start pushing their own operating systems and squeeze MS out of the picture. We've seen that with Google pretty clearly already. Or, maybe it's a bit of both - a way to squeeze a bit more cash out of the tech giants before eventually pushing them out altogether.

    Hard to say, really. China is a mystery wrapped in an enigma to most westerners like myself.

    --
    Irony: Agile development has too much intertia to be abandoned now.
  11. Re:The Chinese are playing... by serviscope_minor · · Score: 3, Insightful

    Whoever modded this insightful is an idiot.

    The EU takes a very dim view on abusive companies, local or foreign. Whining because the company is American just means you get to whine twice. Once because the evil Europeans are harming the benevolent rich american companies and once more because you have shitty phone contracts that massively suck, unlike in the EU, where they dealt with those *local* companies.

    --
    SJW n. One who posts facts.
  12. Have you actually been to China? by sjbe · · Score: 2, Informative

    China with its essentially a rigged economy based on something close to slave labor.

    And you know this how exactly? I've actually been to China whereas you pretty clearly have not. Slave labor? 'Fraid not. China has a lot of people and so thanks to supply and demand, wages are relatively low there. (but rising fast) Yes the Chinese government has a hand in everything but there are plenty of places in the US and EU economies where free trade does not exist and the government is heavily involved. Agriculture, weapons manufacturing, Boeing/Airbus, satellites, automobiles, and many more.

    The only way to compete economically with that is to become that.

    Your argument would be more credible if the US and EU didn't have manufacturing sectors equal to or larger than China's manufacturing sector. Cheap labor is only helpful for products that have a high labor content. Lots of products require relatively little labor or require specialized labor that isn't cheap anywhere. I have a stamping press in my plant for making wire leads. Operating this press requires some of skilled labor to set up and then it is all automated. No amount of cheap labor from China can undercut us on price, we're fast and we can pay our people good wages too. There are some products we can't compete with China on and there are some products China can't compete with us on. The trick is knowing which is which.

  13. karma again by Anonymous Coward · · Score: 2, Insightful

    China is doing what the west did in its day. E.g. if the orient had valuable plants we would sneak them out and grow them ourselves; if the French had movie technology we'd copy it and build our own industry. Of course these days we would NEVER take another person's secrets, and NEVER have unequal trade practices. /sarcasm

  14. Re:So.. who is microsoft competing with? by Insanity+Defense · · Score: 2

    Did you follow how DOCX came to be "standardized"? Specifically the scandalous way they manipulated the ISO standards process?

    How about the parts of the standard that say things like "Do it like Office 9x does" without defining how that is? A "standard" that is not fully defined and which Microsoft itself has yet to fully and compliantly implement.

    Then there are other things like MS coming up with their own way to define leap years which results in disagreement with the existing international standards for what and when a leap year is.