China launches probe against Microsoft, orders raids

Image
Press Trust of India Beijing
Last Updated : Jul 28 2014 | 9:24 PM IST
China has placed US technology giant Microsoft under investigation while officials today conducted raids on its offices in four cities.
The State Administration for Industry and Commerce sent its investigators to the company's offices in Beijing, Shanghai, Guangzhou and Chengdu for an official investigation, Hong Kong-based South China Morning Post reported.
It is unclear why the company is being looked into, it said.
Microsoft China spokeswoman Joan Li confirmed that the company was being investigated and said it would "actively cooperate" with the government.
She did not specify what the investigation was about, the Post report said.
In late May, China announced it would ban government use of Windows 8, Microsoft's latest operating system mostly due to suspicions about cloud technology which stores key information elsewhere.
The ban was sought to ensure computer security after Microsoft ended support for its Windows XP operating system, which was widely used on the mainland.
The state-run broadcaster CCTV also aired a strongly critical programme in which experts suggested Windows 8 was being used to grab information on Chinese citizens.
Experts said the operating system posed a "big challenge" to China's cybersecurity efforts.
They also suggested that Windows 8 was one of the methods that the United States' National Security Agency was using to spirit data out of China, the report said.
Chinese officials have previously stressed that Microsoft should lower the price of Windows.
They have also told local news media that the nation should develop its own operating system to reduce its reliance on foreign companies.
But the Chinese government continued to be a major Microsoft customer.
*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Jul 28 2014 | 9:24 PM IST

Next Story