China Launches Antitrust Probe Into Google, Labels Two Other US Firms as Unreliable

China has escalated tensions in the ongoing trade dispute with the United States, announcing a series of retaliatory measures on Tuesday. These include new tariffs on US imports such as coal, liquefied natural gas (LNG), and crude oil, alongside a high-profile antitrust investigation into Google.

In addition, two US-based firms have been added to China's Unreliable Entity List, potentially restricting their ability to operate or invest in the country.

This latest move marks another significant development in the complex and often strained relationship between China and Google, which dates back to the early 2000s.

Here’s a closer look at Google’s history in China and what the antitrust probe could mean for the tech giant.

Google's Relationship with China

Google’s Entry into China

Google first launched its Chinese-language search engine, google.cn, in 2006. The platform complied with Beijing’s strict censorship laws, filtering search results in line with government regulations. By 2009, Google had captured a 36% market share in China's search engine sector, becoming a major player in the country’s digital landscape.

Google’s Exit from China

In 2010, Google faced increasing pressure due to government-imposed censorship and cyberattacks. The company ultimately ceased operations in mainland China, refusing to comply with further restrictions. Instead, it redirected users to its uncensored Hong Kong search engine.

In response, China blocked Google services entirely, integrating them into its Great Firewall—a vast online censorship system that restricts access to foreign platforms.

As a result, major Google services—including Google Search, Gmail, Google Drive, and the Chrome browser—became inaccessible to Chinese users. Today, China continues to block most Western internet platforms, including Facebook, Instagram, Twitter, and YouTube.

Does Google Still Operate in China?

While Google’s consumer services remain banned, the company still maintains a corporate presence in China, focusing on:

• Advertising Sales: Google sells ads to Chinese businesses looking to target international markets.

• Cloud Computing Services: Google Cloud works with Chinese clients, although access is limited.

• Engineering and Research: Google has offices in Beijing, Shanghai, and Shenzhen, where it employs staff in various business and engineering roles.

Despite these operations, the company's influence in China remains restricted compared to other global markets.

Why Is China Investigating Google?

China’s State Administration for Market Regulation (SAMR) announced on Tuesday that it had launched an antitrust investigation into Google, citing suspicions of anti-competitive practices. However, the details of the probe remain undisclosed.

The timing of the announcement is noteworthy, as it coincided with new 10% tariffs imposed by the US government. Some experts suggest that the probe could be part of China’s broader strategy in the ongoing US-China trade war.

Potential Impact of the Antitrust Investigation on Google

Since the Chinese government has not specified the exact nature of Google’s alleged violations, the immediate impact on the company remains unclear. However, experts speculate that the probe might focus on Google’s dominance in the Android operating system market.

According to John Gong, an economics professor at the University of International Business and Economics, the investigation could center on how Google charges licensing fees for Android to smartphone brands. This is especially relevant as most non-Apple and non-Huawei smartphones run on Android.

A Possible Bargaining Tool in the US-China Trade War?

Given the ongoing tensions between the US and China, analysts believe that Google’s antitrust probe could serve as a negotiation tool.

“Now, this time, Google is put on the chopping board. But I think it's still an investigation, right? It hasn't reached a decision yet,” said Gong. “I think it's very much negotiable.”

Huawei’s Role in the Investigation

In 2019, Huawei was placed on the US Entity List, restricting it from doing business with Google and other American companies. This led Huawei to develop its own HarmonyOS operating system as an alternative to Android.

With China now investigating Google, some industry experts believe this could be a move to reduce reliance on Google’s software ecosystem and promote domestic alternatives.

Google’s History with Antitrust Cases

Google has been investigated for antitrust violations in multiple countries, including:

• European Union: Fined for abusing its market dominance in online advertising and Android.

• South Korea & Russia: Found guilty of unfair competitive practices.

• India & Turkey: Faced penalties for monopolistic behavior in mobile operating systems.

Given this track record, China’s latest probe adds to the global scrutiny surrounding Google’s business practices.

Conclusion

China’s decision to launch an antitrust investigation into Google, alongside new tariffs on US goods and the addition of two US firms to its Unreliable Entity List, signals further deterioration in US-China economic relations. While the exact nature of Google's alleged violations remains unclear, the investigation could have long-term implications for the company’s presence in China.

Additionally, this move highlights China’s push to reduce its dependence on US technology, particularly in the wake of restrictions imposed on Huawei and other domestic tech firms. With ongoing trade tensions, Google's antitrust probe could become yet another bargaining chip in future negotiations between the world's two largest economies.