Microsoft or faces huge antitrust fines experts say non-selective enforcement

China's antitrust once again aimed at the "Big Tiger", Microsoft (China) Co., Ltd. and Shanghai, Guangzhou, Chengdu branch of the recent antitrust surprise inspection, the state Administration for Industry and commerce has been suspected of monopoly of the case investigation. Experts point out that Microsoft is the most likely to be investigated because of its abuse of market dominance, and once the monopoly has been verified, Microsoft or will face a huge ticket.

It is noteworthy that recently, the United States Qualcomm, the United States Interactive Digital Company (IDC) and Microsoft, such as foreign companies have been antitrust investigations. Experts pointed out that this is not aimed at foreign-funded enterprises, nor selective enforcement, all enterprises in China's anti-monopoly law before the equality.

Microsoft's antitrust investigation or alleged abuse of market dominance

Recently, Microsoft China has been the news of the antitrust investigation, the State Administration for Industry and Commerce 29th issued a notice confirmed that, according to the Anti-Monopoly law, the general Administration of commerce and industry in the mainland of China's four operating sites, that is, Microsoft (China) Limited and Shanghai, Guangzhou, The Chengdu Branch also conducted antitrust raids.

According to the report, in June 2013, the State Administration of industry and commerce in accordance with the report reflected by the Microsoft Company's Windows operating system and Office software related information is not completely open to the issue of compatibility issues, tying, document verification and other issues, suspected of violating China's anti-monopoly law, carried out a verification.

The State Administration of industry and Commerce believes that the previous verification can not eliminate the Microsoft company above the behavior of the suspicion of anti-competitive. According to the law, the State Administration for Industry and Commerce has filed a case for investigation into Microsoft's suspected monopoly. The case is currently under investigation. In the face of the survey, Microsoft China issued a statement saying: "We will actively cooperate with the government Department of Investigation, and answer the relevant questions." ”

Ching, a professor at China University of Political Science and political science, said in an interview with Xinhua news agency that no more specific information is being released, but the biggest reason Microsoft has been subjected to antitrust investigations is that it is suspected of abusing its dominant position in the market.

It is worth mentioning that Microsoft this year to stop providing technical support for Windows XP operating system, including system updates and security patches, resulting in nearly 200 million computers face security risks, but also increased the price of Windows 8 operating system, which was once questioned by the public opinion of its "abuse of market dominance, suspected monopoly."

Ching said that at present, China has the national Development and Reform Commission, the State Administration for industry and commerce three antitrust review law enforcement structure, in which the NDRC is mainly responsible for price monopoly investigation and management, the general administration of industry and commerce in addition to the price of monopoly, mainly to examine the abuse of market position and the monopoly , while the Ministry of Commerce is responsible for centralized business review.

Experts said that the anti-monopoly investigation of the law enforcement agencies is the State administration of industry and commerce, from its functional division of labor, Microsoft was "suspected of abuse of market status" of the relevant monopoly charges the most likely.

Microsoft in China has been frustrated or will face huge fines

Industry analysts, if the determination of Microsoft has been identified as abuse of market dominance of the act, under the Anti-Monopoly law, Microsoft may face huge fines.

Ching said that once the monopoly behavior was verified, the illegal enterprises will face three kinds of punishment, one is to stop illegal activities, the second is to confiscate illegal income, three is to be fined.

The 47th article of the Antimonopoly Law stipulates: "If the operator violates the provisions of this law and abuses the dominant position of the market, it shall be ordered by the Antimonopoly Law enforcement agency to stop the illegal act, confiscate the illegal income and place a fine of more than 10% of the sales in the previous year." ”

Ching analysis, if Microsoft's suspected monopoly behavior was eventually verified and punished, mainly affect the market related to their products, which have two good, first, the competitive environment will be improved, the second is the investigation may bring the result of price reduction, the relevant users will become the biggest beneficiaries, this includes both downstream enterprises, but also including end-user consumers.

In fact, in addition to the antitrust investigation, Microsoft has recently suffered setbacks in China. In May this year, the Central government Procurement Center issued the "Information-type agreement on the supply of compulsory energy-saving products to tender Notice", clear all computer products are not allowed to install the Windows 8 operating system; In July, Win8 was not shortlisted for the first batch of shortlisted products by the government in 2014.

Some analysts believe that if the State Administration for Industry and Commerce to Microsoft's investigation, Microsoft's obstruction objectively may bring the domestic operating system opportunities. But Ching that the key is to see whether domestic companies can seize this opportunity, Microsoft was investigated after its product prices may fall, if the domestic product prices can not get down, but not the core technology innovation, it may miss this development opportunity.

Anti-monopoly investigation experts say it's not a selective law enforcement

Microsoft is one of the newest foreign-owned enterprises involved in the antitrust storm this year. Last February, the National Development and Reform Commission confirmed that it was conducting a price-monopoly investigation of Qualcomm, and July 11, the company's president's third-rate team went to the National Development and Reform Commission to undergo an antitrust investigation. In addition, the National Development and Reform Commission also launched an antitrust investigation into the US Interactive Digital Corporation (IDC), which announced the suspension of investigations in May this year after the company made rectification.

Foreign-owned enterprises frequently involved in antitrust investigations, some people issued "China antitrust investigation against foreign-funded enterprises," and the voice speculated that the Microsoft has a special background.

In this regard, Ching that the anti-monopoly investigation of foreign-funded enterprises, there is no particular background, to say that there is a background, their illegal facts is the biggest background.

"This more than a year of antitrust enforcement efforts have been significantly strengthened," Ching pointed out, but China's anti-monopoly law for domestic and foreign enterprises alike, all types of enterprises before the law are equal, there is no selective enforcement.

Ching said that the aim of the anti-monopoly law was primarily to create a level playing field, fair competition means equal opportunities, in the fair and full competition, all market players can market opportunities, and for ordinary consumers, as the competition intensifies, generally speaking, product prices will fall, the quality will improve, therefore, Competition can bring prosperity to the economy and bring benefits to consumers.

Ching points out that recently, the antitrust investigation frequently exerting force, highlighting the government's determination to antitrust, and the reason why the anti-monopoly is not now intensive, one of the most important reason is that China lacks the basis and experience of anti-monopoly law enforcement, the anti-monopoly law has not been implemented since August 1, 2008, law enforcement agencies themselves need to accumulate experience, And any investigation needs a process, the need for rigorous forensics, the case to find out, it takes time.

Ching reminded that with the strengthening of anti-monopoly law enforcement, enterprises, especially illegal enterprises to cover up illegal activities, law enforcement skills are also increasing, antitrust is a process of repeated game, which requires antitrust agencies to continue to increase investigation and punishment, accumulate experience, timely decisive attack.