Russia terminates investigation into Microsoft over Windows XP

On Monday the state anti-monopoly service of Russia, FAS, reported that it closed an investigation into Microsoft as it had found no violations of antitrust laws over cutbacks in supply of the Windows XP operating system. Earlier the agency launched a probe on suspicion that the software giant violates the law by cutting delivery of Windows XP to Russia both as a separate system and pre-installed on personal computers, as well as in its pricing policy on the product.

Major part of the revenue Microsoft gains from corporate customers, who make payments on long-term licensing contracts allowing them to upgrade to the newest versions of its software. But as it turned in reality most of the customers failed to show any desire to upgrade giving preference to the XP version of the operation system.

The president of Microsoft Russia, Nikolai Pryanishnikov, told Reuters the company had provided evidence to FAS that Windows XP was indeed available to customers and said that the company had sold 1.2 million localized Russian copies of the operating system in the 2008 financial year.

"We also showed the importance of replacing products by newer versions and this is a normal practice for all companies," Pryanishnikov said by telephone late on Monday.

He said the company would in addition offer customers a free-of-charge exchange of Windows Vista Home Basic and Windows Vista Home Premium for Windows XP Home.