Taiwan: MS may have violated trade laws

The Taiwanese government has launched an investigation into allegations that Microsoft misused its market dominance by indiscriminately increasing prices.

A taskforce, formed under Taiwan's Fair Trade Commission (FTC), will take at least six months to decide if action should be taken against Microsoft.

Established in 1992, the FTC is charged with drafting fair trade policy, laws and regulations, and investigating and handling various acts impeding competition such as monopolies, mergers, concerted actions, and other restraints on competition or unfair competitive practices by enterprises.

FTC's action originated from complaints by existing Microsoft corporate users, which claimed Microsoft had forced them to start using an enterprise package by August, the China Post reported.

The customers told the regulator Microsoft would cease all technical support if the August deadline was not met, the paper said.

FTC officials were quoted as saying the investigation will seek to determine three issues:

During a press conference Tuesday, Microsoft Taiwan general manager Eunice Chiou denied allegations that the company abused its monopoly status.

Under a trade ruling, a company head could be imprisoned for up to three years or face a maximum fine of NT$100m (£2.1m) if his firm is found guilty of misusing its market leadership.

While Microsoft is being investigated for flouting fair trade laws, Taiwan's National Teachers' Association has called on the software giant not to bill educational institutions, the Taipei Times reported.

"If Microsoft pressures schools to pay exorbitant fees on the premise of protecting intellectual property rights, the association will lobby international teachers' groups to boycott Microsoft products," said Chang Hui-shan, National Teachers' Association director.

Taiwan is racing against time to wipeout copyright piracy as it seeks to be expunged from Washington's "Special 301 Priority Watchlist" of intellectual property offenders. Countries named can face trade sanctions but the US hasn't taken any action against Taiwan, which has been on the list for the last four years.

CNET Asia's Fran Foo reported from Singapore. CNET Asia's staff writer Joseph Chen contributed to this report.

Think it's all over? The antitrust case against Microsoft can still go back the to Court of Appeals, and then there's the European Commission's investigation... See ZDNet UK's DoJ/Microsoft News Section for the latest headlines.

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Taiwan will investigate allegations that Microsoft illegally increased prices