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Report: Microsoft’s Chinese Offices Raided Over Antitrust Allegations

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A Chinese government investigation is probably targeting Microsoft's monopoly of the country's operating system market. (JOHANNES EISELE/AFP/Getty Images)

A Chinese government investigation is probably targeting Microsoft’s monopoly of the country’s operating system market. (JOHANNES EISELE/AFP/Getty Images)

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BEIJING (CBS Seattle) – Microsoft offices in China are being investigated by the government on antitrust allegations, reports CNet.

Chinese government officials raided the software giants’ offices in Beijing, Shanghai, Guangzhou and Chengdu. They removed documents and computers but wouldn’t say what they were looking for.

Microsoft China told a reporter for the Beijing News the State Administration for Industry & Commerce that conducted the search usually investigates antitrust cases, though there has been no confirmation from the Chinese government.

China’s new antitrust investigation could be focused on “unfair trade,” which includes such issues as the abuse of market dominance and price monopoly, according to an attorney with a Shanghai State law firm cited by Sina News.

“Microsoft’s operating system software occupies a 95 percent share of the market in China, forming a de facto monopoly,” says the National Business Daily.

Another industry source said the case could center on Microsoft’s practice of bundling and selling several of its products together.

Microsoft confirms it is under investigation but did not disclose any details.

China announced a ban on Microsoft Windows 8 back in May because of security concerns. It was revealed in state media that Beijing was worried a back door would give the company access to private and sensitive information.

Over the past year, China has begun investigating the business practices of several foreign held companies.

(TM and © Copyright 2014 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2014 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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