China regulator conducts new raids on Microsoft, partner Accenture

A Chinese antitrust regulator conducted new raids on Microsoft Corp and partner in China Accenture PLC, the agency said on its website on Wednesday, after saying last week Microsoft is under probe for antitrust violations.

The State Administration for Industry and Commerce (SAIC) raided offices in Beijing, Northeast China's Liaoning Province, East China's Fujian Province and Central China's Hubei Province, it said. The SAIC also raided the Dalian offices of IT consultancy Accenture, to whom Microsoft outsources financial work, according to the regulator.

"We're serious about complying with China's laws and committed to addressing SAIC's questions and concerns," a Beijing-based Microsoft spokeswoman said in an e-mailed statement.

Accenture also said it is involved in investigations.

"We can confirm that, as required by Chinese laws, we are cooperating with investigators of the State Administration for Industry and Commerce and are helping provide them with certain information related to one of our clients," Accenture Greater China said in an e-mailed statement, declining to elaborate.

Last week, the SAIC said it was formally investigating Microsoft for breach of antitrust rules and had raided four of the software firm's offices in China.

Microsoft has been suspected of violating China's anti-monopoly law since June 2013 in relation to problems with compatibility, bundling and document authentication for its Windows operating system and Microsoft Office software, the SAIC said last week.

The SAIC declined to provide further comment on Wednesday.

Microsoft deputy general counsel Mary Snapp was in Beijing to meet with the SAIC on Monday, where the regulator warned Microsoft not to obstruct the probe.

But industry experts have questioned how exactly Microsoft is violating antitrust regulations in China, where the size of its business is negligible.

The US company has taken a public beating in China in recent months. It has been subject to wider scrutiny against US technology firms in China in the wake of former US National Security Agency contractor Edward Snowden's cyber-espionage revelations.

It has also seen its OneDrive cloud storage service disrupted in China, and had its latest Windows 8 operating system banned from being installed on the central government's new computers.

The Microsoft probe comes amid a spate of antitrust probes against foreign firms in China, including mobile chipset maker Qualcomm Inc and German carmaker Daimler AG's luxury auto unit Mercedes-Benz.

China is intensifying efforts to bring companies into compliance with an anti-monopoly law enacted in 2008, having in recent years taken aim at industries as varied as milk powder and jewelry.

A number of multinational companies including Mead Johnson Nutrition Co and Danone SA have been slapped with substantial fines following similar probes in the past.