"Genuine Microsoft products have a very low market share in China, therefore Microsoft doesn't even have the preconditions of conducting monopoly activities in China," said Zhang Yaqin, vice-president of Microsoft and board chairman of Microsoft China, the Economic Observer reported on Tuesday.

As to accusations from its market rivals regarding high product prices, Zhang said Microsoft operates differential price structures in different regions, and its prices in China are among the lowest.

Zhang's remarks came in response to a lawsuit filed by Chinese lawyer Dong Zhengwei.

On July 31, Dong submitted a petition calling on the Ministry of Commerce (MOFCOM), the State Administration of Industry and Commerce (SAIC), and the National Development and Reform Commission (NDRC), to open an anti-monopoly investigation into Microsoft, and requesting that a fine of US$1 billion be imposed on the US software producer.

On August 21, the NDRC sent a formal notice to Dong, saying that his petition had been officially accepted and assigned to the price monitoring department of the NDRC.

For more details, please read the complete story in Chinese:

(http://www.eeo.com.cn/industry/it_telecomm/2008/08/26/111643.html)

(China.org.cn by Yan Pei, August 26, 2008)