Tomahawk, WI 08/18/2014 (Basicsmedia) – China anti-monopoly laws continue to raise an uproar among foreign companies operating in the country especially those with huge market share like Microsoft Corporation (NASDAQ:MSFT) that are seen as a threat to local companies. Microsoft has already seen the government of China ban the use of Windows 8 maintaining that the operating system has some security flaws. The biggest question according to Sebastien Evrard, partner of antitrust practice at Jones day, is whether the antitrust authorities are only chasing companies in industries controlled by foreign firms.
“It’s true it’s clear that foreign companies are under much tighter scrutiny now in China. The big question is whether this is the result of a deliberate decision by the government to go after foreign companies, or it is simply because the industries under investigation are led by foreign companies,” said Mr. Evrard
Last month officials in China raided Microsoft Corporation (NASDAQ:MSFT) offices in China as part of what they claim to be an anti-monopoly investigation consequently seizing a number of computers and documents from offices in the company’s offices in four cities. Microsoft, Google inc. (NASDAQ:GOOG) and Apple Inc. (NASDAQ:AAPL) have been under immense scrutiny in China especially after five Chinese Military officials were indicted on allegations of spying on American companies.
Evrard believes that the recent investigations by regulators in China is part of the government effort of saying it is going to enforce the full anti-monopoly law both against foreign and local companies. Evrard also stated that the government is using the anti-monopoly law in order to gain favor with customers on the fact that whenever investigation are carried out in this case they always result in reduced prices of products.
“It seems that the government is really using the anti-monopoly law, also to be perceived as the good guy by consumers so they investigated the baby milk industry that led to lower prices by the producers they investigated contact lenses producers same results lower prices,’ said Mr. Evrard.
Companies like Microsoft Corporation (NASDAQ:MSFT) have been forced to remain cautious in terms of their operations in China with owners of intellectual property rights being forced to revisit their terms of licensing to ensure they comply with the anti-monopoly laws.