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Chinese authorities have started investigating Microsoft’s market position in the country for abuse. Microsoft has monopoly not only in China but all over the world due to its Windows operating system.

China’s State Intellectual Property Office has begun an anti-monopoly investigation into Microsoft and several other global software firms, after concerns that legitimate copies of Windows and Office are being priced up to maximize profits and the country moves towards more use of legitimate software. According to a Chinese official:

Microsoft Windows retails at 1,000-2,000 yuan ($145-$290) and its Office software suite at 4,000-5,000 yuan, which together is more than the cost of a computer. It is not right for an international company to use its monopoly position to sell software at outrageous prices while criticising the Chinese people’s awareness of copyright law.

The probe comes ahead of the August 1 implementation of China’s Anti-Monopoly Law, which seeks to outlaw anti-competitive activity.

Business Software Alliance (BSA), a trade group established in 1988 has often criticized China over piracy rates in the country. BSA also includes Microsoft which has pushed for increased action to defend legitimate software. According to a BSA estimation up to 80 per cent of software in use in the country is pirated.

This activity may have provoked China resulting in investigation by the State Administration of Industry and Commerce (SAIC).

A Chinese intellectual property lawyer said:

Microsoft’s case has been such a saga in the European Union, and I think if SAIC are willing to investigate at all, they will have to spend a lot of resources and time on it. It would be a political decision. At a certain time, they may want to pick one company and make an investigation. It always looks good on the front pages.