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Microsoft faces monopoly investigation in China

A Chinese investigation into Microsoft is probably targeting its "monopoly" of the country's operating systems market, state media have said, after the US software company became the latest foreign firm to go under Beijing's scrutiny.

Microsoft confirmed in a statement late on Monday that it was under investigation in China, without disclosing details.

"We aim to build products that deliver the features, security and reliability customers expect, and we will address any concerns the government may have," it said.

The inquiry comes after China in May banned the use of Microsoft'sWindows 8 operating system on all new government computers, amid reports alleging security concerns.

The same month, the US indicted five members of a Chinese military unit for allegedly hacking American companies for trade secrets.

Officials of China's state administration for industry and commerce (Saic) have visited Microsoft offices in Beijing, commercial hub Shanghai, southern metropolis Guangzhou and south-west Chengdu city, state media said.

"Microsoft's operating system software occupies a 95% share of the market in China, forming a de facto monopoly," the National Business Daily said on Tuesday.

An employee of Microsoft China linked the visits to the company's monopoly in China's operating system market, the China Business News said, without naming the individual. It quoted another industry source tying the case to Microsoft's practice of bundling its products together for sale.

Saic officials did not immediately respond to requests for comment by AFP.

Microsoft has previously faced anti-trust investigations in other markets for tying its Windows system to other products.

The US company was fined $731m (£430m) by the European commission in March last year for failing to offer users' browser choices beyond its own Internet Explorer.

Since last year, China has launched a sweeping investigation into alleged wrongdoings by foreign companies in several sectors, including the pharmaceutical and milk powder industries.

Source: Guardian News

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