The Taiwanese government has launched an investigation into allegations that Microsoft misused its market dominance by indiscriminately increasing prices.
A taskforce, formed under Taiwan's Fair Trade Commission (FTC), will take at least six months to decide if action should be taken against Microsoft.
Established in 1992, the FTC is charged with drafting fair trade policy, laws and regulations, and investigating and handling various acts impeding competition such as monopolies, mergers, concerted actions, and other restraints on competition or unfair competitive practices by enterprises.
FTC's action originated from complaints by existing Microsoft corporate users, which claimed Microsoft had forced them to start using an enterprise package by August, the China Post reported.
The customers told the regulator Microsoft would cease all technical support if the August deadline was not met, the paper said.
FTC officials were quoted as saying the investigation will seek to determine three issues:
* If Microsoft abused its market dominance and raised prices
* Whether forcing customers to use such enterprise solutions violates the country's fair trade laws
* If Microsoft retailers hiked prices during a recent crackdown on software piracy
During a press conference Tuesday, Microsoft Taiwan general manager Eunice Chiou denied allegations that the company abused its monopoly status.
Under a trade ruling, a company head could be imprisoned for up to three years or face a maximum fine of NT$100 million (US$3 million) if his firm is found guilty of misusing its market leadership.
While Microsoft is being investigated for flouting fair trade laws, Taiwan's National Teachers' Association has called on the software giant not to bill educational institutions, the Taipei Times reported.
"If Microsoft pressures schools to pay exorbitant fees on the premise of protecting intellectual property rights, the association will lobby international teachers' groups to boycott Microsoft products," said Chang Hui-shan, National Teachers' Association director.
Taiwan is racing against time to wipeout copyright piracy as it seeks to be expunged from Washington's "Special 301 Priority Watchlist" of intellectual property offenders. Countries named can face trade sanctions but the U.S. hasn't taken any action against Taiwan, which has been on the list for the last four years.
CNETAsia's Fran Foo reported from Singapore. CNETAsia's staff writer Joseph Chen contributed to this report.
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