China Reignites Antitrust Probe into Google; Nvidia, Intel Could Be Next

China has recently restarted its antitrust investigations into tech giants Google and Nvidia, and is contemplating a similar inquiry into Intel, as reported by The Financial Times. These investigations could lead to substantial penalties or even limit their operations within China. The timing of these renewed probes, which precede a scheduled diplomatic meeting between the leaders of China and the U.S., suggests they might be used as strategic leverage in upcoming discussions.

The scrutiny of Google centers on its Android operating system, probing whether it places Chinese smartphone producers such as Oppo and Xiaomi at a competitive disadvantage. These companies rely heavily on Google’s software for their devices. The focus is on whether Google’s dominance in the market is detrimental to these manufacturers. Initially launched in 2019, the investigation was paused but resumed in December. In January, officials from the State Administration for Market Regulation (SAMR) made an official visit to Google’s Beijing office.

Nvidia is under examination for possibly failing to adhere to commitments it agreed to during its 2019 acquisition of Mellanox Technologies, a networking hardware firm. The Chinese competition authorities greenlit the merger in 2020 with specific conditions to prevent monopolistic practices and to sustain a steady supply chain for Chinese clients. Following the approval, complaints from within the industry began to surface, although it remains unclear if sufficient evidence has been collected to prove Nvidia’s anti-competitive actions.

As for Intel, details are still vague with no official announcement confirming the start of an investigation. Should it proceed, the focus would likely be on Intel’s commercial practices within China, which is its biggest market globally and where it holds a significant portion of the CPU market share.

This resurgence of regulatory actions by China occurs amidst escalating trade tensions with the U.S. President Donald Trump’s administration has imposed new tariffs on Chinese imports, prompting potential retaliatory measures through the use of competition laws by China. Moreover, the U.S. is enhancing measures to limit China’s growth in the AI and high-performance computing (HPC) sectors. Consequently, the investigations into these prominent U.S. tech firms could also be perceived as a counteraction. However, a researcher from Tsinghua University pointed out that while these investigations could act as bargaining chips, they also carry risks since Chinese companies are equally reliant on American technology.

According to The Financial Times, both Google and Nvidia have so far opted not to comment on the ongoing investigations, while Intel has not responded to requests for comment. Similarly, China’s competition regulators and the Ministry of Commerce have not issued any statements regarding the situation.