Suing Microsoft: All Together Now

Posted on August 27, 2008
Filed Under China Business, China Law |

A mainland competitor of Microsoft Corp is urging a united front against the world’s largest software company for alleged monopolistic practices in the country.

Evermore Software, a developer of a productivity application suite that competes with Microsoft Office, wants to help a Beijing-based lawyer instigate a government probe into the United States company’s alleged anti-competitive business dealings.

“United front” isn’t the most inspiring objective, at least in terms of 20th century Chinese history. Anyways, Evermore is looking for a bigger partner:

An anti-monopoly activist, Mr Dong sent separate letters to the Ministry of Commerce, the National Development and Reform Commission and the State Administration for Industry and Commerce. In the letter - sent July 31, the day before the anti-monopoly law took effect - he asked the Beijing authorities to fine Microsoft US$1 billion for alleged monopolistic practices.

“It will be a huge project to collect the evidence that can prove Microsoft is monopolising the mainland’s PC software market, so it would be best to leave that job to the government,” said Mr Tsao.

He said he did not personally know Mr Dong, but he was keen to support government action against Microsoft.

There’s still some confusion as to what is exactly happening with this:

The Legal Daily reported that the Ministry of Commerce had accepted the complaint from the lawyer and that an investigation was expected.

A Microsoft spokeswoman in Hong Kong said: “Microsoft is not aware of an investigation by the Ministry of Commerce or other anti-monopoly law agencies at this time.”

And what if it does happen?

Wang Weiguo, dean of the school of civil, commercial and economic law at China University of Political Science and Law in Beijing, said an anti-monopoly lawsuit against Microsoft on the mainland would have a high likelihood of success.

“From a legal point of view, it should not be a problem to prove that Microsoft has operated as a monopoly,” Mr Wang said. “Beijing may file a lawsuit if Microsoft has really stifled the scientific innovation potential of smaller Chinese software firms.”

Microsoft has also invested, literally, hundreds of millions of dollars in Chinese software firms. I wonder if that will enter into the equation.

The biggest problem is not the lawsuit, I have no idea as to its merits or the statues by which it will be judged, but the opacity of the whole thing. Stay tuned.