Microsoft 'Visited'

[Randy W]

Oh, boy!

 

Microsoft ‘visited’ by Chinese authorities

Files on computers of some Microsoft managers in Guangzhou have been copied by SAIC, a source close to the matter who requested anonymity told the Global Times.

 

The investigation is probably on possible monopolistic behaviors, said the source.

 

. . .

 

Experts said that Microsoft may face a big fine in China if any monopolistic behaviors are proved.

 

"Inspections on foreign firms are on a regular basis at present, and the inspections could help to improve a foreign company's services in China," said Han Meng, a research fellow with the Institute of Economics at the Chinese Academy of Social Sciences.

 

Han noted that China has offered a comparatively "loose" environment to foreign firms in the past years, which has caused many problems.

 

[Randy W]

How are anti-monopoly fines worked out?

 

Giving themselves up

 

This round of anti-monopoly investigation began in April 2014, while Japanese agencies had conducted anti-monopoly investigations against these companies in 2010 and 2011. After being investigated in Japan, the companies opened their books to relevant organizations in U.S. and the European Union where anti-trust has become the norm.

 

According to anti-monopoly laws in some countries, including China, companies can have their penalties reduced if they report their monopoly agreements and provide clear information about their activities to law enforcement agencies.

 

Investigators from the NDRC contacted Hitachi from Japan and provided them with the relevant regulations of Chinese anti-trust law in March this year. A month later, Hitachi ackknowledged its activities to the commission. Subsequently, Nachi did likewise.

 

 

The investigation process

 

On the basis of existing evidence, the commission required the companies to answer some preliminary questions and provide further materials to the investigation, including original notes, conference proceedings, and emails. Meanwhile, employees directly involved in price negotiations and management personnel were invited to the commission for further enquiries.

 

Investigators collated all the details provided by the targeted companies to make sure they were consistent with each other. Faced with a substantial body of facts and evidence, the companies confessed to their breaches of the law.

 

 

Issuing fines

 

In some countries, including Japan and U.S., any employees or senior executives who have had a hand in price-fixing may be subject to criminal charges. However, the offences in China are civil. Therefore, acting in its capacity as a law enforcement department, the commission imposed administrative penalties on the 12 companies.

 

In accordance with anti-monopoly law in China, to set the amount of fines, law enforcement departments should take into consideration the nature, extent and duration of monopoly activities. As the offences had continued in China for at least 10 years, some of the companies involved received heavier punishments. Others were offereed reductions or exemptions.

 

 

 

Sounds like it's fairly easy to get them to confess, if they've already been found guilty in other countries, and have engaged in the same activities in Chna