Microsoft offices in China were raided today by Chinese government officials for unknown reasons. China’s State Administration for Industry & Commerce made the visits to Microsoft offices in Beijing, Shanghai, Guangzhou and Chengdu. Yesterday, no exact reason was specified by Chinese government regarding this sudden investigation. Today, a Chinese regulator confirmed that they are conducting an anti-monopoly investigation into Microsoft over its Windows OS.
Generally, anti-monopoly investigations are done when some company dominates the market by practicing unethical business practices. Even though Microsoft’s Windows is so popular in China, Microsoft’s revenue from China is almost negligible. Former CEO Steve Ballmer noted in one of this speech that Microsoft earns less revenue in China than in Netherlands.
Even if found guilty, Microsoft may see fines of 1-10 percent of its China revenue which I think will be less $400 million for sure.