Google Inc. (NASDAQ: GOOG) and Baidu.com, Inc. (NASDAQ: BIDU) apprehensive of the new search engine

Google Inc. and Baidu.com are waiting for the competitor to come

In brief: Google Inc. (NASDAQ: GOOG) and Baidu.com, Inc. (NASDAQ: BIDU) are the leading search engines in China. Now China is developing a new search engine.

Baidu.com, Inc. (NASDAQ: BIDU) is apprehensive of the new search engine. Google Inc. (NASDAQ: GOOG)is still a way ahead, but the Chinese China Mobile telecommunications companies are jointly creating an Internet search engine able to rival the U.S. based Google.

Recently, Google had serious problems with the PRC government over the controversy regarding censorship of search results. In China Google is second only to the local-based Baidu Inc search engine. The Chinese Internet market is world’s largest with 420 million users (as of the end of June, 2010), exceeding the U.S. population. This makes Chinese Internet market a challenge for competition. In the first quarter of 2010 Google’s share in the Chinese Internet market constituted 30,9%, decreasing to 24.2% by the end of the second quarter. By contrast, Baidu’s market share increased from 64% to 70%.

Elena Koschiko
2010-08-18 20:03, Economics.

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