Microsoft became the target of an investigation by Japan's anti-monopoly watchdog on suspicions it breached rules of fair competition when negotiating software licences with Japanese computer makers.

Japan's Fair Trade Commission said on Thursday it suspected Microsoft imposed inappropriate, restrictive conditions in contracts it signed with Japanese PC makers licensing them to use its latest Windows XP operating system.

Microsoft confirmed that JFTC officials were at the company's headquarters on Thursday morning and had taken away documents from its main offices. The company said it was cooperating with the investigation.

The licensing agreement under question requires PC makers to agree not to demand licensing fees from Microsoft, even if MS software contains intellectual property owned by those manufacturers, according to Japanese media reports.

Source: ft.com

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