The Chinese government’s recent decision to launch an antitrust investigation into Google marks the latest chapter in the long and complex relationship between the tech giant and China. This move, announced on Tuesday, comes as part of a series of retaliatory actions following the imposition of a 10% tariff by U.S. President Donald Trump on Chinese imports.
In addition to the Google probe, China has also levied tariffs on American liquefied natural gas and other products, and added two U.S. firms to a list of “unreliable entities,” potentially barring them from investing in the country. The investigation into Google is a significant development, and it underscores the ongoing tensions between the two largest global economies.
Google’s history in China dates back to 2006, when it launched a Chinese-language version of its search engine, google.cn. In compliance with Beijing’s strict censorship laws, the search engine was filtered to meet the government’s requirements. At its peak, Google’s search engine held a 36% market share in China. However, tensions began to rise, and in 2010, following a major cyberattack and growing concerns over censorship, Google made the decision to stop blocking search results. Instead, it redirected users to its Hong Kong-based site. In response, China blocked Google’s services, including Gmail, Chrome, and the search engine itself, effectively removing access to the company’s services from mainland China.
This marked a pivotal moment in Google’s relationship with China, and the company’s services have since remained inaccessible in the country due to the government’s “Great Firewall” censorship system, which blocks most Western internet platforms, including Facebook and Instagram.
Despite the blocking of its core services, Google continues to maintain a presence in China. The company focuses primarily on sales and engineering for its advertising business, and its employees also work on services such as Google Cloud and customer solutions. Google operates offices in key cities like Beijing, Shanghai, and Shenzhen, though its ability to expand or offer services in the country remains limited by ongoing censorship.
The Chinese State Administration for Market Regulation (SAMR) announced the investigation on Tuesday, citing potential violations of antitrust laws, though no further details were provided. The timing of the announcement, which came shortly after the U.S. tariffs took effect, has led some analysts to speculate that the investigation could be linked to the ongoing U.S.-China trade conflict.
While the exact focus of the probe is unclear, experts believe it may centre on Google’s Android operating system, which dominates the global smartphone market. Chinese smartphone manufacturers have long raised concerns about Google’s market practices, particularly its licensing fees for the Android system. According to John Gong, an antitrust expert at the University of International Business and Economics, the investigation could be a response to these complaints, and he views it as a bargaining chip in the broader trade dispute between the two nations.
It is also possible that the investigation is aimed at leveraging the power of China’s domestic smartphone brands. Notably, Huawei developed its own operating system, HarmonyOS, after being blacklisted by the U.S. government in 2019, which prohibited the company from engaging with U.S. firms, including Google. This has resulted in growing calls for further scrutiny of Google’s market dominance.
While the probe could take months to conclude, its potential impact on Google’s operations remains uncertain. Google has not yet commented on the investigation, and for now, the company’s immediate prospects in China are unlikely to be affected. However, the ongoing investigation adds another layer of complexity to Google’s relationship with China, which has been fraught with regulatory hurdles and political tension.
The investigation in China is just one of several antitrust probes that Google has faced globally. The company has been accused of abusing its dominant market position in a variety of countries, including the European Union, South Korea, Russia, India, and Turkey. These cases typically focus on Google’s control over key digital markets, such as search, advertising, and mobile operating systems. As regulators around the world continue to scrutinise Google’s business practices, the company will likely face increasing pressure to adjust its strategies to meet local and international regulatory standards.
The latest investigation in China could be an important indicator of how the global tech landscape is evolving amid ongoing geopolitical tensions, especially as tech giants like Google navigate complex relationships with powerful governments around the world. The outcome of the probe, whether it results in fines or regulatory changes, will likely have far-reaching implications for Google’s operations and its future in China.
