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China has kicked off an antitrust investigation into Google, signaling a potential escalation in the ongoing US-China trade war.

Some shit you should know before you read: Over the weekend, President Trump announced a 10% tariff on Chinese imports, citing concerns over China’s role in the fentanyl crisis. In response, China imposed 15% tariffs on US liquefied natural gas (LNG) and coal, as well as 10% tariffs on American crude oil, agricultural machinery, and large vehicles. Additionally, Beijing announced export controls on key industrial materials such as tellurium, bismuth, tungsten, indium, and molybdenum, which are crucial for manufacturing and high-tech industries.  

What’s going on now: In addition to the retaliatory tariffs, China also launched an antitrust investigation into Google, signaling a broader strategy to push back against US trade actions. The probe, led by the State Administration for Market Regulation (SAMR), will examine whether Google has engaged in anti-competitive practices, particularly in relation to its Android operating system and business dealings with Chinese firms. While Google’s consumer services—such as Search, Gmail, and YouTube—have been banned in China since 2010, the company still maintains a limited presence in the country, primarily through offices in Beijing, Shanghai, and Shenzhen. These offices support advertising sales, cloud computing, and technical solutions for Chinese companies that operate internationally.

Many Chinese manufacturers license Google’s Android operating system, paying fees for app distribution and services, which could be a key focus of the investigation. Experts speculate that SAMR may scrutinize Google’s licensing fees and software restrictions, particularly how they impact Chinese smartphone makers. While the specifics of the probe remain unclear, the move places additional pressure on Google and adds another layer of complexity to the ongoing US-China economic standoff.

China’s move comes as Google faces mounting antitrust scrutiny within the United States, where regulators are pushing for a potential breakup of the tech giant. The US Department of Justice (DOJ) has filed a major antitrust lawsuit against Google, accusing it of illegally monopolizing the digital advertising market and engaging in anti-competitive behavior to stifle competition. The lawsuit alleges that Google dominates online ads through acquisitions, exclusive agreements, and control over key advertising technologies, making it nearly impossible for rivals to compete. As part of the lawsuit, US regulators are seeking to force Google to divest parts of its advertising business.

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