TECH

China Launches Antitrust Probe into Google’s Market Dominance

Published: Feb. 5, 2025 5:05 a.m. GMT+8

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Google’s headquarters in Mountain View, California.

China has launched an antitrust investigation into Google over alleged violations of its Anti-Monopoly Law. The probe may be linked to its Android ecosystem, advertising services and past market dominance.

The announcement by the State Administration for Market Regulation (SAMR) on Tuesday didn’t specify which aspects of Google’s business were under scrutiny or give further details. Google has yet to respond to Caixin’s inquiry regarding the investigation.

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China has launched an antitrust investigation into Google concerning its Android ecosystem and advertising services without specifying detailed aspects under scrutiny.
Google's significant presence in China involves Android services, although major smartphone brands develop their versions, influencing market dominance.
Past global antitrust cases against Google, including fines in the EU and U.S. court rulings, might inform China's approach, possibly extending the investigation to other aspects like search and advertising.

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Who’s Who

Google: Google is under investigation in China for alleged anti-monopoly violations, possibly focusing on its Android ecosystem and advertising services. Despite withdrawing its search engine in 2010, Google operates in China through Android, developer tools, and services like cloud computing and AI. The investigation may involve past obligations to treat Android OEMs equally. Globally, Google has faced multiple antitrust probes, resulting in fines, and continues to face scrutiny over its market practices.

Huawei Technologies Co. Ltd.: Huawei Technologies Co. Ltd. is implicated in the investigation due to a refusal by Google to license its services, likely influenced by U.S. export restrictions. These restrictions bar Google from collaborating with Huawei, while their services are technically incompatible with Huawei's hardware. The probe might explore whether Google's actions, influenced by U.S. sanctions, suppressed competition and impacted Huawei's competitiveness.

Xiaomi: Xiaomi is a major smartphone brand in China that develops its own version of the Android operating system without pre-installing Google services like the Play Store. This approach is common among Chinese smartphone brands, reflecting their adaptation to the local market where Google's services are often unavailable due to restrictions.

Vivo: Vivo is a major smartphone brand in China that, like Xiaomi and Samsung, develops its own version of the Android operating system. These brands typically do not pre-install Google services such as the Play Store on their devices.

Samsung: The article mentions that Samsung, along with Xiaomi and Vivo, develops its own versions of the Android system without pre-installing Google services like the Play Store. This indicates that major smartphone brands in China, including Samsung, use Android but customize it for their devices.

Motorola Mobility: Google acquired Motorola Mobility in 2012, leading China’s Ministry of Commerce to conduct an antitrust review, finding Google dominant in the Android ecosystem. Consequently, Google was required to provide free and open licensing for Android. After Lenovo bought Motorola from Google in 2014, some of these obligations were lifted, but other conditions remained. Despite this, Google may have breached the lifted requirement to treat all Android OEMs equally.

Lenovo: In 2014, Lenovo bought Motorola from Google, leading China's Ministry of Commerce to lift some of Google's antitrust obligations, such as treating all Android original equipment manufacturers (OEMs) equally. These actions followed Google's acquisition of Motorola Mobility in 2012, which resulted in previous antitrust reviews due to Google's dominance in the Android ecosystem.

Apple: The article mentions that in the first quarter of 2024, Apple's iOS had a 14% share of China's mobile operating system market, surpassed by Huawei's HarmonyOS, which reached 17%.

Epic Games: In December 2024, a U.S. court ruled in favor of Epic Games, determining that Google had engaged in anti-competitive practices related to app distribution and in-app payments, unlawfully restricting competition and causing harm to Epic Games.

Meta Platforms Inc.: The article mentions Meta Platforms Inc. as a competitor to Google in the keyword advertising sector in China. However, it suggests that the antitrust investigation is unlikely to focus solely on this sector due to strong competition from Meta and others, indicating that Google's Android system and mobile apps may be of greater scrutiny.

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What Happened When

2006：: Google entered the Chinese market with a localized version of its search engine.

2010：: Google withdrew its search engine from China due to censorship concerns and alleged cyberattacks, redirecting users to its uncensored Hong Kong site.

2012：: Google acquired Motorola Mobility, prompting an antitrust review by China's Ministry of Commerce, which found Google held a dominant position in the Android ecosystem.

2014：: After Lenovo acquired Motorola from Google, China's Ministry of Commerce lifted some of Google's obligations, including the requirement to treat all Android OEMs equally.

As of June 2024：: Android held a 69% share of China's mobile operating system market, and Huawei's HarmonyOS surpassed Apple's iOS in market share.

November 2024：: A U.S. court ruled that Google illegally maintained its monopoly in general search and text-based advertising through exclusive agreements.

December 2024：: A U.S. court ruled in favor of Epic Games, finding that Google engaged in anti-competitive practices in app distribution and in-app payments.

By February 4, 2025：: China's State Administration for Market Regulation (SAMR) announced an antitrust investigation into Google over alleged violations of its Anti-Monopoly Law.

AI generated, for reference only