China: Google operating without Internet license
(AFP)
Updated: 2006-02-21 15:14

BEIJING (AFP) - Chinese authorities are investigating US Internet giant Google for launching its local service without the proper license.

Google.cn does not have the Internet content provider (ICP) license necessary to operate in China, the Beijing News said.

"Without a license, foreign capital is not allowed to engage in telecom business, including ICP operations," the paper said.

Instead of its own ICP licence, Google.cn is using the same one as Ganji.com, a Chinese information website.

The newspaper said the Ministry of Information was aware of the status of Google's Chinese operations and that authorities were investigating the incident.

A Google spokeswoman, who asked not to be identified, confirmed the company was using the ICP license of Ganji.com, but said it was operating through the proper channels.

"Google has a partnership with Ganji.com through which we have the required license to operate the Google.cn service in China," the spokeswoman said.

She said Google "clearly displays its ICP licence number on the Google.cn site," but did not want to divulge other details, such as why it had not obtained its own license.

The Beijing News said other foreign Internet companies had previously used the ICP licenses of local enterprises.

Executives at Ganji.com and Ministry of Information Industry officials could not be immediately reached Tuesday for comment on the report.

With an online population of 111 million and growing, China is well on the way to becoming the world's largest Internet market, and many companies feel they cannot afford to miss out, observers have said.