Microsoft's Tokyo office raided in anti-monopoly probe

MICROSOFT’S Tokyo office has been raided by Japanese regulators on suspicion of violating anti-competition laws, following similar accusations against the United States software giant in Europe.

Japan’s Fair Trade Commission today said it believed Microsoft, the world’s largest maker of computer software, imposed unfair conditions on computer manufacturers wanting to license its Windows XP operating system software. Microsoft is said to be co-operating with the investigation, which reportedly involves concerns about wording on copyright and patents in the licensing agreement with Japanese PC manufacturers.

Microsoft Japan does not disclose sales figures, but said it was the largest revenue contributor in Asia for the parent company. For the three months to the end of December, Microsoft posted more than £5.4 billion in revenue.

The investigation is only the latest for Microsoft, which has been plagued by accusations that it has abused its monopoly on PC operating systems to push prices higher or harm rivals. It is already in settlement negotiations with the European Commission, which has accused the company of trying to stifle competition for multimedia players by tying its Media Player programme to its Windows operating system.

Rival firm RealNetworks is suing Microsoft over the same issue, accusing it of unfairly monopolising the growing market for digital music and video. Microsoft has denied such allegations, insisting the market is competitive.