China: Google Controls Too Much Of The Country’s Smartphone Market

China: Google Controls Too Much Of The Country’s Smartphone Market
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Google Inc (NASDAQ:GOOG)’s Android mobile operating system controls the majority of China’s smartphone market, and it has discriminated against some of the local companies in the country, according to a report from CNBC citing a white paper released by the research division of the China’s Ministry of Industry, which was published by the local media.

China: Google Controls Too Much Of The Country's Smartphone Market

The white paper cited that China has become too dependent of  Google Inc (NASDAQ:GOOG)’s Android operating system, which is strictly controlled by the search engine giant even if it is an open source technology.

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“Our country’s mobile operating system research and development is too dependent on Android,” While the Android system is an open source, the core technology and technology roadmap is strictly controlled by Google,” the white paper said.

The paper also emphasized that Google Inc (NASDAQ:GOOG) is discriminating some Chinese companies that are trying to develop their own operating system by delaying code sharing and implemented commercial agreements restricting businesses from developing mobile devices.

Some analysts speculated the possibility that the ministry is considering the implementation of strict regulations against the Android operating system noting that the white paper commended the initiatives of, Inc. (NASDAQ:BIDU), Alibaba Group, Huawei Technology Co Ltd (SHE:002502) for developing its own platforms.

“In China, regulators regulate regularly especially where they can position the regulations as helping out domestic companies,” said Duncan Clark, chairman of technology consultancy BDA, in an email statement to Reuters.

“Ironically, Android’s success has underpinned a lot of the growth in China smartphone vendors in recent years. Home-grown companies had failed previously in China’s market for simple handsets due to weakness in software and operating systems,” Clark added.

The android operating system is used by Huawei Technology Co Ltd (SHE:002502) and ZTE Corporation (SHE:000063), the two major telecommunications companies in China. South Korea’s Samsung Electronics Ltd (LON:BC94), the largest smartphone manufacturer worldwide also uses the android operating system in developing its devices.

Based on the study conducted by IDC last year, China will surpass the United States as the world’s largest smartphone market. It will account 26.5 percent of the total shipment of smartphones globally.

 Android operating system accounts 90 percent of all the mobile devices used in China while Apple Inc. (NASDAQ:AAPL)’s iOS operating system’s market share was only 4.2 percent during the third quarter in 2012.

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