Google (GOOG) Risks Market Share in China by Trying to Outsmart Chinese Firewall
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Google (NASDAQ: GOOG) is now informing users when their search terms trigger China’s censorship mechanism, known as the Great Firewall of China. To combat error messages created by the ‘Firewall’, Google created a dialog box that helps users in China avoid censored terms.
In 2010, Google made trouble for itself in China when the company began redirecting searches to its unrestricted Hong Kong site. In doing so, Google risked losing market share in one of the fasting growing search engine markets in the world.
According to estimates, Google has 17 percent market share in China, down from 39 percent previously. Google’s biggest competitor, Baidu (Nasdaq: BIDU), controls 79 percent of the market.
"It does seem like a move that would be perceived as antagonistic by Chinese Internet authorities," said Jeremy Goldkorn, director of Danwei.com, which researches Chinese media and Internet.
It remains to be seen exactly what the Chinese government’s reaction to Google will be and whether or not the decision will help or harm the company.
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In 2010, Google made trouble for itself in China when the company began redirecting searches to its unrestricted Hong Kong site. In doing so, Google risked losing market share in one of the fasting growing search engine markets in the world.
According to estimates, Google has 17 percent market share in China, down from 39 percent previously. Google’s biggest competitor, Baidu (Nasdaq: BIDU), controls 79 percent of the market.
"It does seem like a move that would be perceived as antagonistic by Chinese Internet authorities," said Jeremy Goldkorn, director of Danwei.com, which researches Chinese media and Internet.
It remains to be seen exactly what the Chinese government’s reaction to Google will be and whether or not the decision will help or harm the company.
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