China Tech News reports:

As China’s first anti-monopoly law went into effect on August 1, 2008, Microsoft (MSFT) has been targeted by Chinese IT companies for suspected monopolistic activities and may become the first defendant in a Chinese anti-monopoly lawsuit.

Cao Can, general manager of Evermore Software, told First Financial Daily that the domestic office software producer has been collecting proof of Microsoft’s monopolistic activities and will fight against the U.S. software giant when the conditions are mature. Cao says his company paid great attention to the anti-monopoly law when it was still a draft, because the monopoly activities of Microsoft in sales and technology harm the interests of Evermore Software and restrict the development and innovation of China’s software industry. The anti-monopoly lawsuit against Microsoft can send a signal to all the other multinational corporations that conduct monopolistic activities in the Chinese market.

Other Chinese IT companies, including Kingsoft, are also reportedly researching the new anti-monopoly law to see whether it is feasible to file a formal lawsuit against Microsoft. Some of them even say that no matter win or lose, they will definitely bring Microsoft to court, because according to the anti-monopoly law, Microsoft undoubtedly holds a monopoly in the Chinese market.

Both Evermore and Kingsoft make office suite software. No word if someone like Red Flag Linux wants to jump on the bandwagon.

The article makes an excellent point on the subsidies and market access protection that Chinese technology companies enjoy. It even mentions that software pirates may be to blame for Microsoft’s dominant position.

Despite all that, it would seem the temptation is too great to resist filing some kind of civil action against Microsoft. Microsoft has lots of money and there’s always the possibility that they may pay to make the problem go away.

I have no idea on the merits of these kinds of suits under Chinese law, or how Microsoft will choose to respond if one is filed. Whatever effect suits like this have on the technology industry, they’re bound to be a boon for the legal industry.

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