Google faces antitrust probe in China: here’s why

Google

China has announced an antitrust investigation into global search engine giant Google, potentially in response to new tariffs imposed by U.S. President Donald Trump. This move could escalate trade tensions between the two countries, as they have been locking horns against each other since the early 2000s.

Why has the Chinese government launched a probe against Google?

Although Google services are not accessible in China, the company still maintains a presence in the country. Google currently primarily focuses on sales and engineering for its advertising business, the company also has employees working for its services in China, including Google Cloud and other customer solutions.

However earlier this week, China’s State Administration for Market Regulation announced that it was investigating Google on suspicion of violating antitrust laws. While regulators did not provide further details, the announcement came minutes after the new U.S. tariffs came into effect, which were imposed by new U.S. President Donald Trump.

In addition to the probe, China has also slapped fresh tariffs on US imports, which are 15% on coal and liquefied natural gas (LNG) and 10% on oil and agricultural equipments. Similar tarrifs have also been imposed on Mexico and Canada. With few details on what exactly Google is being investigated for is still being ascertained, the impact of its operations in China is still unclear. However, the immediate status of the company is unlikely to be affected by the probe, which could take months to be properly implemented.