After Cook and Zuckerberg, Microsoft’s Nadella is visiting China: 3 reasons why – CNBC
In 2014, China’s State Administration for Industry and Commerce (SAIC) opened an investigation into Microsoft regarding the country’s anti-monopoly law relating to “compatibility, bundle sales, file verification issues related to Windows and Office software, and potentially other issues,” according to the company. Inspections of Microsoft’s offices were carried out.
The investigation is still ongoing. A Microsoft spokesperson could not comment on whether Nadella would be meeting regulators over this issue, but a Reuters report suggested that he would.
It would not be unusual for Nadella to meet the authorities. Last month, Apple’s Tim Cook met with China’s internet regulator while Facebook’s Mark Zuckerberg met the nation’s propaganda chief when he visited in March.
Resolving regulatory issues is key for technology companies because it could threaten revenue.
“Certain foreign governments, particularly in China and other countries in Asia, have advanced arguments under their competition laws that exert downward pressure on royalties for our intellectual property. Because these jurisdictions only recently implemented competition laws, their enforcement activities are unpredictable,” Microsoft said in a U.S. Securities and Exchange Commission filing along with its fiscal third-quarter earnings in April.