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Reuters：China is preparing an antitrust investigation into Google, sources say
KEY POINTS
China is preparing to launch an antitrust probe into Alphabet’s Google, looking into allegations it has leveraged the dominance of its Android mobile operating system to stifle competition.
A decision on whether to proceed with a formal investigation may come as soon as October and could be affected by the state of China’s relationship with the U.S., Reuters reported.
China is preparing to launch an antitrust probe into Alphabet’s Google, looking into allegations it has leveraged the dominance of its Android mobile operating system to stifle competition, two people familiar with the matter said.
The case was proposed by telecommunications equipment giant Huawei Technologies last year and has been submitted by the country’s top market regulator to the State Council’s antitrust committee for review, they added.
A decision on whether to proceed with a formal investigation may come as soon as October and could be affected by the state of China’s relationship with the United States, one of the people said.
The potential investigation follows a raft of actions by U.S. President Donald Trump’s administration to hobble Chinese tech companies, citing national security risks.
This has included putting Huawei on its trade blacklist, threatening similar action for Semiconductor Manufacturing International and ordering TikTok owner ByteDance to divest the short-form video app.
It also comes as China embarks on a major revamp of its antitrust laws with proposed amendments including a dramatic increase in maximum fines and expanded criteria for judging a company’s control of a market.
A potential probe would also look at accusations that Google’s market position could cause “extreme damage” to Chinese companies like Huawei, as losing the U.S. tech giant’s support for Android-based operating systems would lead to loss of confidence and revenue, a second person said.
The sources were not authorized to speak publicly on the matter and declined to be identified. Google did not provide immediate comment, while Huawei declined to comment.
China’s top market regulator, the State Administration for Market Regulation, and the State Council did not immediately respond to requests for comment.
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2020-09-30 22:23:32
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