China is reportedly preparing to launch an antitrust investigation into U.S. tech giant Google Inc. and the probe was recommended by Chinese telecoms giant Huawei Corp. last year.
Reuters, citing sources with knowledge of the matter, said on Wednesday that the investigation into Google stemmed from Huawei’s allegations last year that Google was using its Android mobile operating system to stifle competition in the market. China’s State Administration of Market Supervision has referred the case to the State Council’s Anti-Monopoly Commission, which is considering the allegations and will decide whether to launch a formal investigation as soon as October.
Reuters, citing anonymous sources, said Huawei also accused Google’s monopoly status of causing “great harm” to Chinese companies like Huawei because losing Google’s support for the Android operating system would cause users to lose confidence in the Chinese company and reduce its revenue.
Reuters says it’s unclear which Google services are likely to be the focus of the investigation, but that most Chinese smartphone providers use open-source versions of the Android operating platform, while services such as search and email provided by Google are banned in China.
If a formal antitrust investigation were to take place, China would also look at the practices of other countries, including questioning senior Google officials and referencing how other countries base fines on a company’s global revenue rather than local revenue, sources said.
The European Union fined Google $5.1 billion in 2018 for market monopolies, forcing it to give European smartphone users more choice in the search tools and operating systems they pre-set.
At the same time, China is making significant changes to its antitrust law, with proposed amendments that include significantly higher maximum fines and defining standards for market control.
Recent Comments