Google, part of Alphabet Inc, aims to launch the China version of its
Google Play smartphone app store next year, according to people familiar
with the matter, its first major foray in the market since ending
localised product support in 2010.
The Google Play app store would be
set up specifically for China, and not connected to overseas versions of
Google Play, two of the people said.
They said Google intends to
comply with Chinese laws on filtering content that might be viewed as
sensitive by the ruling Communist Party, and laws requiring the company
to store the app store's data within China.
A Singapore-based Google spokesman declined to comment.
The US company would use a successful app store as a
launch pad to place other products and services in China, said two
people familiar with Google's thinking.
They said, however, that the company has not settled on which product might come next.
Chief
Executive Sundar Pichai and other top brass have made no secret that
the company wants to get back into China, and Google Play would likely
be its first foray.
But critics say Google has lost basically all
ground in most of its major services, especially search and video
streaming, to Chinese players.
The biggest competition might come from products on the wrong side of the law, said technology analyst Rob Enderle.
"There
are a substantial number of free ways people get music in China that
makes it difficult for any service, especially from the West, to get
into the market," he said.
Breaking the ice
For Google,
having a product in China would be a symbolic gesture to show that the
company values the market, said Shen Si, CEO of Chinese mobile
advertising company PapayaMobile and a former Google employee.
"If
they want to break the ice with the Chinese market then they have to
pick a pretty important product to make available to the Chinese people
and make it really localised," she said.
"Google Play would be a really good product for that because it's not very sensitive."
Chris
MacDonald, a business ethics expert at Toronto's Ryerson University,
agreed Google Play was a safer bet than search or Gmail in China but
said Google should take its time deciding what product to bring to the
market next.
"Which ones involve the least consumer data? Which
ones are least likely to be politically sensitive or serve as a means of
expression for political dissidents?" asked MacDonald.
If Google wants to penetrate the Chinese market in a meaningful way it has to be led by search, said Enderle.
"How
do you use YouTube without search? Everything they've got hinges on
search. In the end if they can't get search in everything it is going to
be even more crippled than it already is," he said.
Google has
had its employees working hard in China to lay the ground for the app
store's launch, said one of the people with knowledge of executives'
plans.
The US-based firm is hoping to launch Google Play in China
some time after Chinese New Year in February next year, and before early
summer, that person said. Another person at a company in China that
works with Google said the store will go live in 2016.
The company
hopes the app store will include as payment options Alipay, the online
payment service from Alibaba Group Holding Ltd's finance arm Ant
Financial Services Group, and Tencent Holding Ltd's WeChat Payment, said
the person familiar with executives' thinking.
Rather than
requiring explicit approval from China's government to launch the app
store, Google just needs to comply with Chinese laws including those
governing data storage and content filtering, the person added. That was
echoed by PapayaMobile's Shen.
Spokeswomen for Ant Financial and Tencent declined to comment.
Too big to ignore
China
is too big a market for Google to ignore. Apple Inc complies with local
laws and made $58.7 billion (roughly Rs. 3,88,059 crores) last in the year ended September 26 in Greater
China, which includes the mainland, Hong Kong and Taiwan, making it its
second-biggest market.
Because services like its search,
e-mail and mapping are blocked in China, the US firm is trying to cement
partnerships with domestic providers like Mobvoi, which offers
technology similar to Apple's Siri and Google's own version.