FRENCH authorities conducted a search of the offices of Microsoft's French division near Paris, a police source said without specifying the motives for the raid.

The operation at the offices in Issy-les-Moulineaux was carried out jointly by police and representatives of French tax services, the source said.

A Microsoft France spokesman confirmed the operation but said it was "in the framework of a standard tax audit".

"Of course we answer their questions and give them the information they need," said Marc Mosse, head of Microsoft France's legal department.

Asked why the tax officers would be accompanied by the police, he added: "When you enter private premises, detectives need to be there."

Microsoft France is headed by Eric Boustouller.