Microsoft is Under the Antitrust Microscope in China

Apparently, China has “major issues” it wants Microsoft to explain…

chinese-flagIn July of 2014, China raided Microsoft’s local offices and confiscated a lot of data as part of an antitrust investigation. On 2016-01-05, Chinese regulators demanded that Microsoft explain “major issues it discovered with that data”. This was the first time in over a year that China gave any indication that their antitrust investigation would be moving forward.

Microsoft has publicly stated that it is “serious” about complying with Chinese law and to addressing SAIC’s (China’s State Administration for Industry and Commerce) concerns.

At the beginning of the investigation, China said it was interested in information on how both Windows and Office were bundled, about compatibility between the two and other unnamed concerns.

China’s most recent demands haven’t been clarified or spelled out, but SAIC has asked Microsoft to submit their “defense in a timely manner.”

God knows what they need to defend, or what Microsoft needs to respond to.

Some are speculating that this is retaliation due to Microsoft retiring Windows XP and discontinuing support for it to any and all customers – including the Chinese government and its citizens. China had asked Microsoft to extend XP’s lifespan. Microsoft refused. China said, “pretty please;” and Microsoft STILL said no. China has banned the use of Windows 8 on any government computers.

Microsoft is heavily pushing the adoption of Windows 10 around the world, and China is no exception to this marketing strategy. A short while ago, as of this writing, Microsoft expanded a partnership with one of China’s largest defense firms where it would license Windows 10 to government agencies and some state owned corporations in the energy, telecommunications and transportation industries.

While this is a serious issue, and while Microsoft is giving this issue the appropriate level of priority, it seems as though Microsoft could make all of this go away if they simply provided continued Windows XP support to the Chinese government.

I’m pretty certain, however, that capitulation isn’t a consideration for Microsoft, for a number of different reasons, the most important being

  1. Microsoft isn’t providing preferred XP support to anyone
  2. Microsoft is pushing the world’s Windows users to Windows 10
  3. Windows XP has been heavily pirated in China

Given all of this – and especially the last two points – Microsoft doesn’t really have any incentive TO capitulate. I know I wouldn’t want to if I were Satya Nadella.

Until SAIC can specify what they want Microsoft to respond to, I’m not certain how anyone would reasonably respond to this – in a timely manner or not.

What do you think? Is China’s SAIC just ticked off that their XP PC’s are unsupported? Does Microsoft have anything tangible to worry about in China? What do you think the final outcome will be?

Why don’t you meet me in the discussion area below and let me know what you think?

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Communicate with all of your friends and contacts via IM or video with QQ International

QQ InternationalChina has long been one of the biggest, untapped internet markets on the planet. If you have friends or family in China, then you’re going to want to take a long hard look at QQ International. Its an IM app for Windows, and it is very popular there.

QQ international has been serving hundreds of millions of Chinese users since 1998. In China, QQ is THE go-to app for instant messaging, because of its predominant market share.

QQI-01QQ International is the missing link between China’s largest online network and the non-Chinese speakers who live in China or have an interest in the country.

In addition to connecting with people you already know, QQ International is a great place to meet and make contact with people who share a similar interests in China, from all over the world. Might it be for business, dating, lifestyle or travel, you will easily find active interest groups and start making new friends or exchanging ideas right away.

QQ International is the best way to communicate with friends and loved ones who either have an interest in China or who actually live there. The app comes with multiple language interfaces, including English, so you’ll be able to use the app no matter what language you speak. In the States, IM apps aren’t very big, but in China, they most certainly are, and QQ is one of the best.

If you’ve used ICQ, then you’ll find QQ very familiar and easy to use. Its very similar in look, feel and function.

download QQ International

 

 

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RIM Keeps Manufacturing Out of China

This one act has probably done more to show the world that RIM is in it to win it than any other so far this year – RIM is staying out of China.

The Huffington Post had a really great article in it yesterday. The article described how Thorsten Heins, RIM’s CEO, has made an operational decision to stay out of China. Specifically speaking, despite the cheap labor and lax environmental laws, RIM’s manufacturing operations won’t be moving there… ever.

The immediate question is, “why is this important?” That’s really quite simple. Historically, it’s been very easy for Chinese companies to “acquire” intellectual property and produce like and/or competing products and services from companies operating within their borders. In many cases, government officials order, intimidate, cajole, or otherwise “make” Chinese workers cough up the information.

Shortly after that happens it’s not been unheard of for foreign companies to lose or be underbid for work because a Chinese organization introduces a like product and wins a contract or business with that illicitly gained information. This is a well-known occurrence for organizations with operations in China.

RIM is in butt-saving mode. Its cutting staff, cutting costs etc., trying to insure that it has enough staying power to release BB10 and the new devices that run it. The one thing it won’t be doing to save money on manufacturing costs.. ? Moving its manufacturing operations to China.

This is huge step in the right direction for RIM; and it may be the first thing they’ve done right this year. This decision protects RIM’s reputation, RIM’s current product line and most importantly, RIM’s customers from rogue Chinese government sponsored hackers running amok through RIM’s enterprise, or YOUR enterprise because the Chinese were able to hack through BIS/BES. It protects RIM’s most valuable asset – its security features. It also protects RIM’s value

Despite the fact that RIM could have saved a great deal of money on operating expenses, Heins has likely saved the company by keeping the company out of China.

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Today is the day when the Internet goes on strike against SOPA

January 18th – A day we’ll remember. Thousands of sites went dark to protest against SOPA and PIPA, two US bills racing through Congress that threaten prosperity, online security, and freedom of expression. Sites are striking in all different ways, for example, Google censored its own logo and Wikipedia decided to bring out drastic measures in the fight, as they make the website unavailable for 24 hours in protest against the bill.

One thing is clear, if the bill will pass, the Internet will never be the same and it will affect everyone around the world, not only the people of US, by blocking site’s web traffic, ad traffic and search traffic using the same website censorship methods used by China, Iran and Syria. All websites both inside and outside the US could be blocked based on an infringement claim and website based on user-generated content like YouTube and Reddit could be really effected.

By clicking Google’s logo or the link just under the logo takes you to a SOPA / PIPA landing page that displays these words:

Millions of Americans oppose SOPA and PIPA because these bills would censor the Internet and slow economic growth in the U.S.

Two bills before Congress, known as the Protect IP Act (PIPA) in the Senate and the Stop Online Piracy Act (SOPA) in the House, would censor the Web and impose harmful regulations on American business. Millions of Internet users and entrepreneurs already oppose SOPA and PIPA.

The Senate will begin voting on January 24th. Please let them know how you feel. Sign this petition urging Congress to vote NO on PIPA and SOPA before it is too late.

The page gives you the option to sign a petition against the legislation, and I hope you will!

https://www.google.com/landing/takeaction/

You can also declare your opposition to it via a PIPA petition website

To find out more information about SOPA, visit: http://en.wikipedia.org/wiki/Stop_Online_Piracy_Act

 

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Microsoft will conquer China through Bing

In January 2010 Google decided to withdraw its service activity from China because of the censorship policy. This decision has left a big opportunity for Microsoft, who on Monday announced an English-language search deal with Baidu, China’s leading search provider. Being a company with an arguable morality, Microsoft will censor Bing’s search results in order to ensure that they are in compliance with local laws.

With a 75 percent share of China’s search queries, Baidu will offer about 10 million english-language queries per day for Bing. The contract between these search providers will lead to an improvement in the search quality results for China and offers a chance for Baidu service to expand worldwide.

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