Agency Raids Microsoft's Tokyo Office over Software Contracts
Posted on: Thursday, 26 February 2004, 06:00 CST
Feb. 26--TOKYO -- The Fair Trade Commission (FTC) on Thursday raided Microsoft Corp.'s Japan headquarters on suspicion that the firm violated the Antimonopoly Law in connection with software licensing deals with Japanese personal computer (PC) makers.
Sources close to the action said Microsoft has allegedly forced Japanese PC makers to accept a contractual clause stipulating that they will not bring a case to court even if the software giant's technologies are very similar to those developed by Japanese firms.
The FTC investigation concerns Microsoft's Windows XP operation software, which is commonly used in PCs being sold in Japan.
According to the sources, the FTC suspects Microsoft demanded such a clause that puts Japanese PC makers at a disadvantage by capitalizing on its dominant position in the PC operating software market.
The antimonopoly watchdog intends to issue an order requiring Microsoft to get rid of the clause if its probes confirm the company's conduct is violating the Antimonopoly Law.
A spokesman for Microsoft's Tokyo office admitted that the FTC had raided the headquarters, but declined to elaborate.
"We are trying to look into the details of the investigation and will decide what to do as soon as we get to know the full details, including whether we will hold a press conference on this matter," the spokesman said.
In 1998, the FTC warned Microsoft to stop what it called the unfair business practice of demanding Japanese PC makers install the Excel spreadsheet and the Word application together.
At the time, the FTC also warned against Microsoft's practice of requiring PC makers to accept the Internet Explorer browser as part of its operating system amid competition with a rival browser, saying it was questionable from an antitrust viewpoint.
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(c) 2004, Kyodo News International, Tokyo. Distributed by Knight Ridder/Tribune Business News.
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