Some leading websites in China, including Sohu.com, 51.com and Xiaonei are preventing Baidu searches on their websites. Taobao.com, a subsidiary of the Alibaba Group, has also begun blocking Baidu searches as well as partially blocking searches by Google and Yahoo.  Management at these companies has stated that they are trying to protect the privacy of their users – personal profiles and personal blogs in particular. Analysts, however, believe that the move has more to do with Baidu’s dominant position in China’s online search market. In addition to a 60% share of the Chinese search, Baidu has recently announced plans to launch its own e-commerce platform as well as its own online payment system.  Source: Digital Media

Paul Denlinger of China Business Strategy commented, “I find this excuse a real stretch. Since when has anybody worried about user privacy in China before? What guidelines do they use for protecting user privacy? This sounds much more like a desire to dial back the power of Baidu and its search.”

Source: Digital Media article – Courtesy www.bsgasia.com

BIIA Newsletter October 2008 Issue