The Chinese government has initiated an antitrust probe into Google, marking the latest development in the complex relationship between the two entities dating back to the early 2000s. This investigation is part of a series of retaliatory measures announced by China in response to a 10% tariff imposed by U.S. President Donald Trump on imports from China. Alongside the probe into Google, China also imposed tariffs on American liquified natural gas and other products, and placed two American firms on an unreliable entity list that could restrict their investments in China.
Google's history in China dates back to 2006 when it launched the Chinese-language search engine google.cn, which was censored to comply with Beijing's laws. By 2009, Google held a significant market share in China, but in 2010, following a cyberattack and growing resistance to censorship rules, Google ceased blocking search results and shut down its Chinese search engine, redirecting users to its Hong Kong site. Subsequently, Beijing blocked access to Google services, including Gmail, Chrome browser, and the search engine, under its Great Firewall censorship system.
Despite Google services being inaccessible in China, the company maintains a presence in the country, focusing primarily on sales and engineering for its advertising business. Google operates offices in Beijing, Shanghai, and Shenzhen.
The State Administration for Market Regulation in China announced an antitrust investigation into Google, citing suspicions of violating antitrust laws. While specific details were not provided, the probe was unveiled shortly after the implementation of new U.S. tariffs. The impact of this investigation on Google's operations remains uncertain, with experts speculating that it may revolve around Google's Android operating system for smartphones and its role in the U.S.-China trade war.
Chinese smartphone manufacturers have reportedly raised concerns about Google's market practices, particularly the licensing fees paid to use the Android system. The investigation is ongoing, and its outcome is yet to be determined. Google has faced antitrust allegations in various countries, including the European Union, South Korea, Russia, India, and Turkey, for allegedly abusing its market dominance.
