Microsoft Taiwan Suspected of Discriminating in Collecting Fees

E020602X4 Jul. 2002(E35)

Controversies emerge unceasingly as a result of Microsoft’s marketing price and methods over its software marketed in Taiwan.  Zheng You (鄭優), the Vice Chairperson of the Fair Trade Commission, which had undertaken an investigation on Microsoft Taiwan with a view to verifying whether it is suspected of making a monopoly of market, indicated on June 1, 2002 that Microsoft Taiwan’s pricing of its software series, including premium version, education version, retail version or OEM full version, is likely to constitute the “discrimination in collecting fees” as defined in the Fair Trade Law.  Nevertheless, he also emphasized that whether this marketing method should refer to an act in normal business operation or whether Microsoft Taiwan attacked its competitors by means of improper marketing is pending investigation now, and whether it violates the law or not still requires verification.  Once Microsoft Taiwan’s violation of the law is confirmed, it will be punished with a penalty of more than NT$50,000 but less than NT$25,000,000 according to Article 41 of the Fair Trade Law.

 

In this regard, Microsoft Taiwan has not yet made any further response, but simply reiterated that according to their unfailing pricing strategy the prices for any shipment to their global agents are consistent and all quoted at US dollars; however, due to different currency exchange rates, pricing flexibility applicable between agents and distributors, and the consideration for VAT included or excluded, the retail price varies in each market consequently.

 

Source:Commercial Times 06/02/2002

       (also see related news in Commercial Times 06/04/2002)

    Translated by Corrina Wu
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