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Qualcomm, a major supplier of cellphone chips, has been under Chinese probe since November over how it calculates patent-licensing and royalty rates and other issues.
Dow Jones
Beijing
Chinese regulators yesterday publicly warned Microsoft Corp against obstructing an antitrust investigation into the firm, in the latest sign that Beijing has turned frosty on the US software maker.
China’s State Administration for Industry and Commerce said in a statement that Microsoft should avoid “interferring in or obstructing” the probe. The regulator also said it had questioned Microsoft Deputy General Counsel Mary Snapp as part of the investigation.
About 100 SAIC investigators raided Microsoft’s offices last week in four Chinese cities. The agency said Microsoft hadn’t disclosed relevant information about some security features and how it ties its software products together.
A Microsoft spokeswoman in Beijing declined to comment yesterday. The company previously said its business practices in China were designed to comply with Chinese law, and has pledged to cooperate with the probe. The SAIC also said yesterday that Microsoft had promised to abide by the law and cooperate.
The investigation is the newest friction point between the US and China, following disclosures about the US National Security Agency surveillance and revelations of hacking of US networks by China’s military.
US executives at several tech firms have said their business has been hurt by mounting suspicions against US firms in China.
Qualcomm Inc a major supplier of cellphone chips, also has been under investigation since November over how it calculates patent-licensing and royalty rates in China and other issues. The chip maker said last month the investigation could trigger fines and a possible loss on business in the country. Qualcomm said China’s investigation has contributed to new uncertainty in the country.
Microsoft Chief Financial Officer Amy Hood said last month the company continues to see challenging conditions in China because of a weak business environment.
Microsoft has worked for years to crack the Chinese market and has battled rampant software piracy in the country. Chief Executive Satya Nadella lobbied Chinese officials in 2012 to allow the company to sell cloud-computing services with a Chinese partner.
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