China is preparing to launch an antitrust investigation against Google, a subsidiary of Alphabet Inc.
The investigation will look into allegations that Google used its dominance of the Android mobile operating system to stifle competitors. Reuters says the matter quotes two trust sources.
Last year, Chinese telecom equipment maker Huawei Technologies filed an antitrust lawsuit against Google. The proposal was submitted to Huawei for review by the Antitrust Committee of the State Council, China’s top marketing regulator.
A source said that the china antitrust investigation could officially begin against Google this October. And that could be influenced by Beijing’s relationship with Washington.
Chinese technology company Huawei has been blacklisted by the Trump administration. There’s the top semiconductor manufacturer and TikTok owner company ByteDance has also been threatened.
The Reuters report said China could launch a possible investigation into Google, following steps taken by the Trump administration to crack down on Chinese technology companies, citing national security risks. China is making sweeping changes to its anti-trust laws. It includes various aspects of the issue of maximum fines and market control.
A possible anti-trust investigation in China could take into account the extreme losses of a Chinese company like Huawei in capturing the market against Google. Huawei has suffered huge losses due to Google’s lack of Android support.
However, Google and Huawei have not commented on the matter. China’s regulatory body, the State Administration for Market Regulation (SAMR) and the State Council has not commented.
Google is unable to provide any technical assistance to Huawei due to its blacklisting in the United States. As a result, Huawei is not getting Google’s mobile services. Google has suspended its license to service Huawei since August this year.
Google which services could be read in a possible antitrust investigation in China. It’s not clear yet. Most Chinese smartphone makers use the open-source Android version of Android. Google search, Gmail and other services shut down in China.
Huawei reported revenue of $12 billion less than its revenue target last year. The United States is responsible for this. Huawei unveiled its own plan last month to reduce its reliance on Google. This includes its own Harmony operating system, which the company will add to new smartphones next year.