Microsoft executive says compliance with Chinese officials 'challenging'

Microsoft says it is working closely with Beijing to make sure its under-investigation China business stays on the right side of the law. But the firm finds compliance “challenging”, a top company executive has revealed.

China is very important to the computer empire that creates software, operating systems, phones and gaming consoles – and it aims to be successful in one of the world’s largest consumer markets.

In line with that aim, with a quest to conquer the mid-range consumer phone market, Microsoft unveiled two new budget smartphones, the Lumia 640 and 640 XL, at the Mobile World Congress (MWC) in Barcelona, Spain, in a challenge to Chinese smartphone maker Xiaomi.

Stephen Elop, the executive vice-president of Microsoft’s devices and services business, said the company was just as “focused on” getting back on track in China after settling a tax dispute. An antitrust investigation, however, is still ongoing.

“We work closely with the government officials to make sure we are doing the right things from a legislative perspective, and it’s challenging,” he told the South China Morning Post at the summit in Barcelona. “But we view this as an important market.”

China’s State Administration for Industry and Commerce launched a probe last summer into complaints against Microsoft involving compatibility, bundling and document-authentication issues with its popular software products. Soon after, authorities raided the company offices in Beijing, Guangzhou, Shanghai and Chengdu cities.