With China’s Antitrust Investigation Into Google, What’s at Stake?

China retaliated in opposition to tariffs from america on Tuesday with a sequence of measures that took goal at American corporations. Together with imposing tariffs and import restrictions, the nation stated, it had launched an antitrust investigation into Google.

The announcement of the investigation was obscure — only one line on a Chinese language company’s web site. However it thrust Google, whose search engine is unavailable in China, into the center of a geopolitical dispute and added to the corporate’s lengthy checklist of regulatory complications.

A Google spokesman declined to touch upon the Chinese language authorities’s investigation.

Google has the world’s most generally used search engine, and in addition leads the marketplace for digital promoting. The corporate has confronted antitrust investigations around the globe, together with in america, Canada, Europe and South Korea.

Whereas it’s nonetheless unclear how China’s antimonopoly investigation will develop, it might have an effect on Google’s dealings with Chinese language corporations. Right here’s extra in regards to the firm’s restricted operations there:

China’s antitrust authority, the State Administration for Market Regulation, stated it deliberate to analyze Google. The authority accused Google of violating an antimonopoly legislation with out offering any extra particulars.

The identical physique has been investigating Nvidia, the American chip-making big, on antitrust grounds since December.

Google’s core merchandise are unavailable in China due to the nation’s censorship restrictions. The corporate’s search engine, video platform YouTube and Play Retailer for apps are all unavailable within the nation.

Google stated it maintains a restricted presence in China, with most of its exercise targeted on serving to Chinese language corporations join with clients and audiences outdoors of the nation. This contains offering Android, its cell working system, to Chinese language cellphone makers like Lenovo, Xiaomi and Vivo. Android code is open supply, so cellphone makers can use it without charge.

The Silicon Valley firm additionally lets Chinese language corporations promote on Google and YouTube outdoors of China. Temu, the worldwide arm of the Chinese language e-commerce big Pinduoduo, has flooded Google with adverts for cheap items to realize extra clients in america. Shein, a Chinese language clothes firm, additionally advertises on Google providers outdoors of China.

Google has a tough historical past in China. The corporate pulled its search engine out of China in 2010 due to authorities censorship and what the corporate stated was a cyberattack from Chinese language hackers making an attempt to realize entry to human rights activists’ e-mail accounts.

Sergey Brin, Google’s co-founder, stated on the time that the corporate objected to China’s “totalitarian” insurance policies when it got here to censorship, political speech and web communications.

However as China’s web grew, Google was tempted to leap again in. In 2018, the corporate was growing a search app for China known as Dragonfly, which might have censored info that was banned by the Chinese language authorities. The venture prompted outrage amongst Google staff and in 2019, the corporate stated it stopped the trouble.

Google additionally opened a middle for synthetic intelligence in China in 2017, saying “the science of A.I. has no borders.” Two years later, the corporate shut the middle and emphasised that it was not conducting A.I. analysis in China.

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