Microsoft Corporation (NASDAQ:MSFT)’s latest operating system Windows 8.1 has been banned by the Chinese government as there are doubts on the reliability and security issues. Recently, news came from China that it plans to develop an in-house operating system. This has come as a serious blow to Microsoft and other tech firms for whom China forms a huge market. An antitrust investigation is, also, undergoing on the world’s largest software company by the Chinese government.
Important visit for Microsoft
Understanding the sensitivity of the issues and realizing the consequences of losing out on the Chinese software market completely might has raised tension and worry among the company. Probably to resolve the issues effectively and hold on to the market the CEO of Microsoft Corporation (NASDAQ:MSFT), Mr. Satya Nadella has planned a visit to China later in the month of September, says a report from Reuters citing a source familiar with the matter.
While no information is available on how Nadella seeks to solve the issue, but it is expected that the CEO will either meet few representatives of the Chinese government or discuss matters with one of the antitrust regulators of China such as the State Administration for Industry and Commerce (SAIC).
China is seen as a potential market by the CEOs of foreign-based companies as the country is the second-largest economy of the world. Antitrust tensions are growing in the nation, which has led many CEOs visit the country to resolve such issues with being Nadella the latest in the list.
Chinese government strict on foreign firms
An anti-monopoly law created in 2008 is being enforced by the Chinese government in the nation as a part of which the country is scrutinizing many foreign firms. This practice is not very much approved by few of the critics, who find it an unfair method of targeting overseas businesses.
China is known for its rampant Windows piracy, and despite this China’s SAIC accused Microsoft of breaching anti-monopoly laws related to compatibility, bundling and document authentication for its Windows operating system and Office suite of applications.
Microsoft has been accused of not being fully transparent with information about its Windows and Office sales by SAIC, informs Zhang Mao, head of the antitrust regulator SAIC. Mao informed that they were laying major focus on Microsoft Corporation (NASDAQ:MSFT)’s web browser and media player.