Google losing Chinese market share - report

Internet Business News, August 30, 2005

INTERNET BUSINESS NEWS-(C)1995-2005 M2 COMMUNICATIONS LTD

The China Internet Network Information Center (CNNIC) has revealed that search engine Google is losing market share in China to Baidu.com, a local rival.

The research from the CNNIC showed that Baidu has increased its market share in Beijing, Guangzhou and Shanghai by a minimum of 10% in the last six months. The search engine market in China is expected to reach an estimated value of CNY3bn (USD370m or GBP207m) by 2007, an increase from CNY700m in 2004. China's Internet use is increasing, with the country's Internet search users expected to grow to around 187m in two years' time, in comparison to the current 100m.

According to the CNNIC, Google held the largest market share until three months ago but now has a 33% share of Beijing's search engine market, with Baidu holding 52%. In Shanghai Google holds a 38% market share and 29% in Guangzhou, compared with 44% and 48% for Baidu, respectively. Google now owns a 3% strategic stake in Baidu, having bought into its competitor when it was listed this month on the Nasdaq stock index.

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