Hungary competition authority raids Microsoft office

BUDAPEST (Reuters) - Hungary's competition authority (GVH) said it had raided Microsoft Corp's (MSFT.O: Quote, Profile, Research, Stock Buzz) Hungarian subsidiary because it suspected the firm had abused its market power when dealing with software distributors.

"The competition authority on July 19 carried out an inspection on site without previous warning at Microsoft Magyarorszag Kft," the GVH said on its Web site.

"The GVH sensed that (Microsoft) likely applied a system of conditions and benefits -- rewards for loyalty -- for the most significant software distributors which gave no incentive to these distributors in selling other products competing with Microsoft Office software," it added.

If proven, such conduct could be against European Union competition law, the GVH said.

Microsoft Magyarorszag was not immediately available for comment.