Microsoft and China haven’t always gotten along and seems things just took a turn for the worse between the two. This is surprising as we thought the relationship was getting better with the upcoming release of the Xbox One in the Asian country.
Microsoft offices in four different cities, Beijing, Shanghai, Guangzhou and Chengdu in China were raided by the authorities on the 28th of July as part of an anti-monopoly investigation. China’s State Administration for Industry and Commerce (SAIC) has revealed that around 100 officials made unannounced visits to Microsoft’s offices in China, seeking information on Microsoft’s security features and the way it bundles software. The raid may be revolving around rumors of national security issues regarding spying.
It is unclear whether the raid is linked to the investigations into major IT suppliers, that were promised by the Chinese authorities back in May in the aftermath of the U.S. indicting Chinese army officials over economic espionage-related hacking. Reports claim that the investigation comes due to complaints by rival tech companies regarding compatibility issues with Microsoft’s Windows and Office software. Officials have interviewed senior Microsoft employees and copied data, contracts, and financial reports. I have a feeling Microsoft is feeling quite violated right about now.
Microsoft has been quick in releasing an official statement that said: “We aim to build products that deliver the features, security and reliability customers expect, and we’re happy to answer the government’s questions.”
Source: Wall Street Journal