China prepares antitrust investigation against Google
|China is preparing to launch an antitrust investigation into Google, looking into allegations that it used the dominance of its Android mobile operating system to stifle competition. Two informants familiar with the matter told Reuters. |
Huawei Technologies requested an investigation from the state regulator last year. The case was referred to the Antimonopoly Committee of The state Council. According to one of the sources, the decision to conduct an official investigation may be made as early as October. This decision may be influenced by the state of relations between China and the United States.
The possible investigation follows a series of actions by the administration of US President Donald trump aimed at restricting the work of Chinese technology companies under the pretext of national security concerns.
In particular, this includes the inclusion of Huawei, the world's largest manufacturer of telecommunications equipment, in the black list of the Ministry of Commerce, restrictions on the export of American products to the manufacturer of semiconductor chips Semiconductor Manufacturing International Corp, and pressure on ByteDance to force it to sell the popular TikTok service to American companies.
According to a second informant, the investigation will also look at allegations that Google's position in the market could cause "extreme damage" to Chinese companies such as Huawei, as the loss of support for the us tech giant's Android-based operating systems will lead to a loss of trust and revenue.
China is now embarking on a major review of its antitrust laws. The proposed amendments include a sharp increase in maximum penalties and expanded criteria for evaluating a company's control over the market.
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