China has reopened investigations into Google and Nvidia for violating antitrust laws and is considering launching a similar probe against Intel, reports The Financial Times. These actions could result in heavy fines or restricted access to the Chinese market. However, the investigations are possibly linked to trade tensions between China and the U.S. and were restarted ahead of a meeting between the two countries' presidents, so the reopenings could be a way to gain leverage in the talks.
The inquiry into Google focuses on its Android operating system and whether it unfairly disadvantages Chinese smartphone manufacturers like Oppo and Xiaomi, which depend on Google software for their devices. Regulators are examining whether Google's market dominance harms these companies. The original examination started in 2019 but was shelved for years. It was restarted in December, and representatives of the State Administration for Market Regulation (SAMR) visited Google's office in Beijing in January.
Nvidia is being probed over potential breaches of commitments made during its 2019 takeover of the networking hardware company Mellanox Technologies. China's competition authority approved the acquisition in 2020 under conditions meant to prevent monopolistic behavior and ensure a stable supply to Chinese customers. However, shortly after the approval, the authority began collecting complaints from the industry, though it is unclear whether it has gathered enough evidence of the green company's anticompetitive behavior.
The potential investigation into Intel is less clear, as no official confirmation has been made that it has begun. If launched, the probe could target the company's business practices in China, its largest global market, where it commands the lion's share of the CPU market.
The actions of the Chinese government coincide with rising friction between the U.S. and China. President Donald Trump has introduced new tariffs against Chinese goods, and China's response may include using competition laws as a countermeasure. Also, the U.S. is increasing its efforts to curb China's development in AI and HPC sectors, so the investigation into three major U.S. companies could also be a form of response. However, a Tsinghua University researcher noted that while this tactic could serve as a negotiating tool, it also risks controversy, as not only American companies depend on the Chinese market, but Chinese companies also depend on American technologies.
According to The Financial Times, Google and Nvidia have declined to comment on the investigations so far, while Intel has not responded to inquiries. China's competition regulators and the Ministry of Commerce have also remained tight-lipped about the matter.
