[photopress:MicrosoftChina.jpg,full,alignright]China is drafting an anti-monopoly law that might force companies such as Microsoft to give up leading market shares in the world’s fastest-growing economy.
Under the law, local or overseas companies with more than 50 percent of China’s market share for any product will be investigated. Those using dominant market positions to set unfair prices will be fined as much as 10 percent of annual sales. This according to a draft obtained by Bloomberg News.
The Chinese government is strengthening laws to help local companies compete as the country prepares to remove the final trade barriers and investment hurdles after five years in the World Trade Organization.
Any company with more than 50 percent of China’s market may be fined ‘more than 1 percent and less than 10 percent of the total turnover of the preceding year,’ if it abused its dominant position, according to the draft law, which doesn’t say whether the fine applies to global income or revenue earned in China.
Edward Yu, chief executive of Beijing-based technology market research firm Analysys International says that Microsoft’s Windows operating system has more than a 50 percent share of the desktop-computer market in China.
Source: China Daily