Google loses out in Chinese search engine market

Jul 21, 2010

Google's share of the Chinese search engine market fell in the second quarter while the US Internet giant was embroiled in a public battle with Beijing over censorship, a research firm said Wednesday.

The web titan's share of the world's biggest online market fell to 24.2 percent in the three months to June, from 30.9 percent in the first quarter, Analysys International said in a report.

At the same time, Chinese web search engine Baidu increased its dominance with its market share rising to 70 percent in the second quarter from 64 percent in the first three months of the year.

China's was worth 2.67 billion yuan (394 million dollars) in the second quarter, up 48 percent year on year.

"Uncertainty over helped Baidu to expand its market share," Analysys said.

In March, Google said it would no longer bow to government censors and effectively shut down its Chinese search engine, automatically re-routing mainland users to its uncensored site in Hong Kong.

The web giant has since tweaked the way it re-routes users in order to gain the renewal of its business licence in China.

Analysys said Google's decision to shift its server to Hong Kong and uncertainty over the renewal of its licence cost the company valuable market share.

"But now the uncertainties have been resolved, Google will make a comeback," the research firm said.

The number of Internet users in has leapt to 420 million, according to official figures released last week.

The figure, almost a third of the population, marks an increase of 36 million -- more than the population of Canada -- since the number of users was last given at the end of 2009.

is due to release its second-quarter results, which analysts expect to show a 67-70 percent year-on-year increase in revenue.

Explore further: Pinterest buys startup with image organizing skills

add to favorites email to friend print save as pdf

Related Stories

Baidu shares soar as net profit sharply higher

Apr 28, 2010

Baidu shares soared past 700 dollars on Wednesday after the Chinese Web search giant more than doubled its net profit amid Google's conflict with the Chinese authorities.

Official: Google's China changes in line with law

Jul 20, 2010

(AP) -- China renewed Google's Internet license after it pledged to obey censorship laws and stop automatically switching mainland users to its unfiltered Hong Kong site, an official said Tuesday.

Executive who led Google's China expansion leaving

Sep 04, 2009

(AP) -- The executive who led Google Inc.'s expansion in China after being hired away from Microsoft Corp. following a high-profile court battle is leaving to start his own business, the U.S. search engine ...

Recommended for you

Teens love vacation selfies; adults, not so much

12 hours ago

(AP)—Jacquie Whitt's trip to the Galapagos with a group of teenagers was memorable not just for the scenery and wildlife, but also for the way the kids preserved their memories. It was, said Whitt, a "selfie ...

US spy agency patents car seat for kids

15 hours ago

Electronic eavesdropping is the National Security Agency's forte, but it seems it also has a special interest in children's car seats, Foreign Policy magazine reported Wednesday.

Country Web domains can't be seized

17 hours ago

The Internet's regulatory authority said Wednesday that country-specific Web domains cannot be seized in court proceedings, as it sought to quash an effort to recover assets in terrorism-related lawsuits.

User comments : 0