Why Google Aims for an Exemption in the Huawei Ban

Google is facing significant repercussions from the ban on Huawei, forcing the company to seek an exemption. This crux of the issue lies not only in the potential loss of revenue but also in the broader implications of the ban on the future of mobile operating systems and the global tech landscape.

The Financial Implications

Google stands to lose a substantial amount from the ban, estimated to be 700 million devices that would otherwise run Android. Huawei's own custom operating system is a direct competitor to Android, and if this transition takes place, Google will lose more than just market share. The company profits from a range of services integrated into its ecosystem, and a shift to a Huawei OS could significantly impact these revenue streams.

The Global Market Concerns

Google is deeply aware of the repercussions on a global scale. Huawei's development of an operating system comparable to Android—and potentially superior—poses a significant threat to Google's dominance. As other large smartphone manufacturers such as Samsung also consider switching to a Huawei OS, Google risks losing its monopoly on the search engine market. The vast market in Asia, which is crucial for Google, is at risk if Huawei's operating system gains widespread adoption.

National Security and Industry Competition

The US government's decision to ban Huawei from doing business within the country has not gone unnoticed by Google. The company is lobbying for an exemption, arguing that the ban risks US national security. However, the financial and market considerations appear to be the primary drivers for Google's lobbying.

Government and Media Reports

Media reports have revealed that Google, along with other organizations including the White House budget office, are seeking reprieve from the ban on doing business with Huawei. In a report by the Financial Times, Google warned the Donald Trump administration that any ban will risk compromising national security. This move to seek an exemption is a strategic and proactive approach by Google to mitigate possible losses.

The Motive Behind the Lobbying

Google's motive behind seeking an exemption in the Huawei ban is not merely profit, although that is a significant factor. The company is also concerned about maintaining its monopoly in the search engine market. With the potential shift to a proprietary search engine by Huawei or its allies, Google could lose its dominant position, relying solely on advertising revenue as a fallback.

Moreover, Google's recent actions have attracted scrutiny from government antitrust officials, who are considering whether the company has become 'too big to function without conflicting interests.' This bears a striking resemblance to the antitrust concerns that led to the breakup of ATT in 1983.

In conclusion, Google's lobbying efforts to exempt itself from the ban on Huawei are a multifaceted response to the threat posed by the growing dominance of Huawei's technologies. This includes loss of revenue, challenges to market dominance, and potential antitrust implications. The outcome of these efforts will have significant impacts on the global tech landscape and the balance of power in the mobile operating system and search engine markets.