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China is preparing for an antitrust probe into Google on allegations that it has leveraged the dominance of its Android mobile operating system to stifle competition.
A potential probe would also tackle accusations that Google’s market position could substantially damage Chinese companies such as Huawei, as losing Google's support for Android-based operating systems would lead to loss of revenue and confidence.
The US bars Google from providing new Huawei phone models with technical support and access to its Google Mobile Services, upon which most Android apps are based.
Chinese regulators will be looking at examples set by Europe and in India if it proceeds with the probe.
The EU fined Google US$5.04 billion at the current exchange rate in 2018 over anti-competitive practices.
Huawei Technologies Co proposed the case last year and has been submitted for review by the country’s top market regulator to the Chinese State Council’s antitrust committee.
A decision to undertake a formal investigation might come as soon as this month.
China is also embarking on revamping its antitrust laws to include a dramatic increase in maximum fines and expanded criteria for judging a company’s market control.
