Star formation is regulated through a variety of feedback processes. In this study, we treat feedback by X-rays and discuss its implications. Our aim is to investigate whether star formation is significantly affected when a star forming cloud resides in the vicinity of a strong X-ray source. We perform an Eulerian grid simulation with embedded Lagrangian sink particles of a collapsing molecular cloud near a massive, 10(7) M-circle dot black hole. The chemical and thermal changes caused by radiation are incorporated into the FLASH code. When there is strong X-ray feedback the star forming cloud fragments into larger clumps whereby fewer but more massive protostellar cores are formed. Competitive accretion has a strong impact on the mass func...