Robert Besser
08 Feb 2025, 02:45 GMT+10
HONG KONG: China has launched an antitrust investigation into Google, marking another chapter in the tense relationship between the U.S. tech giant and Beijing.
The probe comes as part of China's retaliation against new tariffs imposed by U.S. President Donald Trump, escalating tensions between the two economic powers.
The Chinese State Administration for Market Regulation announced the investigation on Tuesday, just minutes after Trump's 10 percent tariff on Chinese imports took effect. The move follows other retaliatory measures, including tariffs on American liquefied natural gas and placing two U.S. firms on China's unreliable entity list, which could restrict their operations in the country.
While Google's core services-including its search engine, Gmail, and Chrome browser-are blocked in mainland China, the company still maintains a presence there. It operates offices in Beijing, Shanghai, and Shenzhen, primarily for sales, engineering, and cloud services.
Google initially entered China in 2006, launching google.cn, a censored version of its search engine that complied with Beijing's strict internet regulations. By 2009, it held about 36 percent of the search market. However, after a cyberattack and growing tensions over censorship, Google shut down its search engine in 2010, redirecting users to its Hong Kong-based site. Since then, China's Great Firewall has blocked Google services, along with other Western tech platforms like Facebook and Instagram.
Regulators did not specify details, but the timing suggests the probe is part of China's broader response to U.S. trade policies.
Antitrust expert John Gong from the University of International Business and Economics believes the investigation could focus on Google's Android operating system. Outside of Apple and Huawei, Google dominates China's smartphone market. Most Chinese phone makers pay licensing fees to use Android, which has been a point of contention for years.
"Now, this time, Google is put on the chopping board. But I think it is still an investigation, right? It has not reached a decision yet," Gong said, adding, "I think it's very much negotiable."
With limited details about the investigation, Google's immediate impact remains uncertain. The probe could take months to unfold and might serve as a bargaining chip in the ongoing U.S.-China trade war.
Google has faced antitrust scrutiny worldwide, including in the European Union, South Korea, Russia, India, and Turkey, for allegedly abusing its market dominance. Whether China's investigation will result in sanctions or business restrictions remains to be seen.
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