Microsoft Denies Revised Terms Are Shield to End Its Services in China
Zhang Yushuo
DATE:  Aug 10 2020
/ SOURCE:  Yicai
Microsoft Denies Revised Terms Are Shield to End Its Services in China Microsoft Denies Revised Terms Are Shield to End Its Services in China

(Yicai Global) Aug. 10 -- Microsoft has refuted rumors it recently updated its service agreement in possible preparation to stop serving Chinese users. The company is unwavering in its commitment to continue to supply its services to its customers in China, it told Yicai Global today.

The Redmond, Washington-based software giant amended the agreement's disclaimer -- known in legal parlance as a force majeure clause -- on Aug. 1 to read, "Microsoft is not responsible or liable for any failure to perform or delay in performing its obligations under these Terms to the extent that the failure or delay is caused by circumstances beyond Microsoft’s reasonable control (such as labor disputes, acts of God, war or terrorist activity, malicious damage, accidents or compliance with any applicable law or government order)." The amended provisions will take effect on Oct. 1.

The ongoing talks between Microsoft and Beijing ByteDance Technology over the US software giant's acquisition of video-sharing app TikTok's US business have led some to believe the altered limitation clause relieves Microsoft of liability if it is unable to continue to provide services in China in the event of a US government ban barring any business, government agency or individual in the country from using the company’s software.

This is not the first time related content has cropped up in Microsoft’s terms of service. Similar terms appeared in Office products' trial agreement updated in June 2011, according to Microsoft China’s website.

Outside China, the limitation clause is also available in services agreements for Australia, the UK and Japan, but is absent from the US version.

The exemption clause applicable to some overseas markets has been present in Microsoft's service agreement for at least one year, various analysts said. This is probably merely scattershot boilerplate that seeks to buffer it from any and all political risks, rather than relating to any specific events.

US President Donald Trump signed another executive order blocking all US transactions with ByteDance and fellow Chinese tech giant Tencent Holdings effective Sept. 20 in order to “deal with the national emergency with respect to the information and communications technology and services supply chain …” These actions have ignited rumors and speculation about the ramifications for other global tech firms.

Editor: Ben Armour

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Keywords:   Microsoft,Windows,TikTok,Serive,Trump Administration