Exclusive: China preparing an antitrust investigation into Google - sources

A decision on whether to proceed with a formal investigation may come as soon as October and could be affected by the state of Chinas relationship with the United States, one of the people said.

It also comes as China embarks on a major revamp of its antitrust laws with proposed amendments including a dramatic increase in maximum fines and expanded criteria for judging a companys control of a market.

A potential probe would also look at accusations that Googles market position could cause extreme damage to Chinese companies like Huawei, as losing the U.S.

Chinas top market regulator, the State Administration for Market Regulation, and the State Council did not immediately respond to requests for comment.

Most Chinese smartphone vendors use an open-source version of the Android platform with alternatives to Google services on their domestic phones.

Seeking to overcome its reliance on Google, the Chinese firm announced plans this month to introduce its proprietary Harmony operating system in smartphones next year.

Chinese regulators will be looking at examples set by their peers in Europe and in India if it proceeds with the antitrust investigation, the first source said.

China will also look at what other countries have done, including holding inquiries with Google executives, said the person.

The second source added that one learning point would be how fines are levied based on a firms global revenues rather than local revenues.

Indian authorities are looking into allegations that Google is abusing its market position to unfairly promote its mobile payments app.

Original article