At the same time, China is embarking on major changes to its antitrust law and has proposed a number of amendments, including a substantial increase in the maximum fine and an expansion of the criteria for judging a companys market manipulation, Reuters said.
Another person familiar with the matter said the investigation will also allege that Googles market position may cause extreme harm to Chinese companies such as Huawei, because the loss of the U.S. technology giants support for Android based operating systems will have an impact on their revenue and market confidence.
At present, the State Administration of market supervision and administration, the State Council, Google and Huawei have not commented on this.
If Chinas regulators continue to conduct antitrust investigations, they may refer to the practices of European and Indian regulators on Google, including inquiries of Google executives, focusing on how to impose fines based on Googles global revenue rather than local revenue, people familiar with the matter said.
In July 2018, the European Commission decided to impose a fine of 4.34 billion euros (about US $5.06 billion) on Google due to its illegal restrictive measures to strengthen its dominant position in search engine and violate EU anti-monopoly rules. The decision prompted Google to offer European users more options than the default search tool, and gave mobile phone manufacturers the freedom to use more competitive systems.