openPR Logo
Press release

Empire Asset Investments Follows Baidu As Regulator Questions Their Business Model

06-06-2016 03:16 PM CET | Business, Economy, Finances, Banking & Insurance

Press release from: Empire Asset Investments

Empire Asset Investments Closely Follows Baidu As Regulator Questions Their Business Model

Empire Asset Investments Closely Follows Baidu As Regulator Questions Their Business Model

Last month the Internet giant Baidu, China’s equivalent of Google must change how it displays search results, regulators said Monday, following an outcry over the death of a student whose family used it to seek a cancer cure.

The ruling by the Cyberspace Administration of China (CAC) calls into question the business model of Baidu, Which is quoted on the Nasdaq exchange in New York and has a market capitalization of more than $60 billion, even after it fell heavily in the wake of the scandal.

Wei Zexi, 21 had already been diagnosed with a terminal soft tissue disease when his relatives used the search engine to find an experimental immunotherapy treatment at a Beijing hospital run by the armed police force.

Before he died, Wei denounced the firm online as “evil” and warned other cancer patients “not to be cheated” in comments that went viral, drawing an onslaught of criticism against Baidu.

“Baidu’s mechanism for ranking paid results depends too heavily on price paid and does not clearly indicate paid results, as well as other problems,” the CAC said in an article in its in- house newspaper.

The system “influenced the impartiality and objectivity of its search results, making it easy to mislead users, and must be immediately rectified”.

In a response posted online, the Internet firm pledged to display “eye-catching” markers and warnings on advertised content and limit the proportion of paid search results to 30 percent per page.

Baidu also pledged to set up a fund of 1 billion yuan ($154 million) to compensate future victims of paid content.

During the investigation period it had removed 126 million paid results from 2,518 medical institutions, from its searches, it said.

“The death of Zexi incited a huge response from all of society, and has given Baidu great momentum, triggering all Baidu staff to reexamine our responsibilities as a search engine company,” said Baidu senior vice president Xiang Hailong.

The company’s chief executive Robin Li, who is China’s fourth-richest man worth $12.6billion according to the latest Bloomberg ranking, was summoned by regulators as part of the probe, reports said.

Baidu is often seen as China’s equivalent of Google, although the US firm is hardly a direct competitor as it is blocked on the mainland and terminated most of its operations in 2010 after controversy over the country’s online controls.

Search services accounted for nearly 84 percent of Baidu’s total revenues last year, the company’s annual report showed. Most of the business came from customers “who pay us a fee based on click-throughs for priority placement of their links in the search results”, it said.

Baidu’s lucrative online marketing business has been hugely controversial. The company came under fire this year for selling the right to manage an online haemophilia forum to an unlicensed private hospital, which state media said used the platform for self-promotion and deleted comments that challenged it credentials.

In 2011, Baidu was forced to apologise after China’s state television reported fraudulent advertisements had been posted on its platforms, ranging from phoney airline tickets to unlicensed pharmaceutical adverts.

Even with this latest scandal Baidu still remain strong with search services making the majority of their revenue the Chinese giant will continue to grow stated Lee Goodman Invest analyst for Empire Asset Investments.

Empire Asset Investments is one of the world's leading investment organizations. Our primary focus is targeting promising business opportunities at their start-up or initial growth stages.

Our time-proven and tested strategies have been developed through our experienced leadership network and unsurpassed sector knowledge.

Suite 11023, 110 Wall Street, 5th Tower New York, NY 10005 USA

This release was published on openPR.

Permanent link to this press release:

Copy
Please set a link in the press area of your homepage to this press release on openPR. openPR disclaims liability for any content contained in this release.

You can edit or delete your press release Empire Asset Investments Follows Baidu As Regulator Questions Their Business Model here

News-ID: 343399 • Views: 512

More Releases from Empire Asset Investments

Empire Asset Investments Looks At Omen X HP’s insane new gaming PC
In recent news Hewlett-Packard which launched its Omen sub-brand of gaming PCs back in May, has rolled out its newest desktop gaming PC offering. It’s absolutely ridiculous in the best kind of way. The Omen X is a computer like a Ferrari is a car. Let’s start with its case, which looks like something straight out of “Hellraiser.” A 60-pound behemoth, the Omen X houses its components in a cube that
Empire Asset Investments Looks Into Sony’s Plans To Unveil Two PlayStation Con …
Sony will debut a redesigned version of its standard PlayStation 4 along with a higher-end PlayStation 4, codenamed “Neo,” during a press event on Sept. 7, according to The Wall Street Journal. Sony revealed the existence of its PS4 “Neo” back in June, but the redesigned PS4 is a new development. As Polygon and Kotaku point out, the redesigned PS4 popped up in a listing on the online classified site Gumtree.
Empire Asset Investments Checks If Alibaba’s dominant cloud business could tak …
Chinese e-commerce giant Alibaba (BABA) reported stellar fiscal first-quarter earnings on Thursday propelled by revenues that spiked 59%, surging past Wall Street estimates. And while talk of e-commerce transactions soaring on mobile dominated the announcement, analysts also paid close attention to the company’s cloud computing business, Alibaba Cloud — and for good reason. Founded in 2009, Alibaba Cloud has evolved into China’s dominant cloud computing services provider, offering clients including Dutch
Empire Asset Investments Tracks Apple in Talks to Feature Twitter App on Apple T …
The early bird catches the Apple? That's reportedly the narrative between Apple and Twitter, as sources tell The New York Times that the companies are discussing an Apple TV-Twitter partnership. This partnership would feature the Twitter app on Apple TV, giving Apple TV users the ability to stream NFL games. Both companies didn't offer comments to The New York Times. Twitter's move for live-streaming rights wasn't cheap, clocking in at approximately $10

All 5 Releases


More Releases for Baidu

Online Advertising Market Is Booming Worldwide | Amazon, Baidu, Facebook, Google
HTF MI recently introduced Global Online Advertising Market study with in-depth overview, describing about the Product / Industry Scope and elaborates market outlook and status to 2023. The market Study is segmented by key regions which is accelerating the marketization. At present, the market is developing its presence and some of the key players from the complete study are Amazon, Aol, Baidu, Facebook, Google, IAC, Linkedin, Microsoft, Twitter & Yahoo
Global Internet Advertising Market 2018 - Alphabet, Facebook, Baidu, Yahoo! Inc
Apex Market Reports, recently published a detailed market research study focused on the “Internet Advertising Market” across the global, regional and country level. The report provides 360° analysis of “Internet Advertising Market” from view of manufacturers, regions, product types and end industries. The research report analyses and provides the historical data along with current performance of the global PP Pipe industry, and estimates the future trend of Internet Advertising on
Global Smart Bicycle Market 2018 - Baidu, LE, XiaoMi, BESV, Google
Apex Market Reports, recently published a detailed market research study focused on the “Smart Bicycle Market” across the global, regional and country level. The report provides 360° analysis of “Smart Bicycle Market” from view of manufacturers, regions, product types and end industries. The research report analyses and provides the historical data along with current performance of the global PP Pipe industry, and estimates the future trend of Smart Bicycle on
Mobile Game Market Worldwide: Zynga, King, Take-Two, Sony, Baidu
Qyresearchreports include new market research report “Global Mobile Game Market Size, Status and Forecast 2025” to its huge collection of research reports. The global Mobile Game market is the subject of our latest report which tracks important events in the market such as technological developments, product launches, mergers and acquisitions, and others. The report offers top-line quantitative and qualitative information pertaining to the market size, trends, and its trajectory. The report
Global Internet Advertising Market 2017 - Yahoo, Facebook, Alphabet, Baidu, Micr …
This Global Internet Advertising report represents the mainly focused key purposes, which includes various tasks such as to identify, predict, and explain the global market. The markets which are based on the several aspects such as solution, organization size, service, deployment mode, vertical and region have been thoroughly studied. Every sub-segment has been deliberately scrutinized by through this report to concern the growth trends of individual, future prospects and
Global Online Backup Services Market 2017 - Amazon, Microsoft, Google, BaiDu
This report studies the global Online Backup Services market, analyzes and researches the Online Backup Services development status and forecast in United States, EU, Japan, China, India and Southeast Asia. This report focuses on the top players in global market, like Amazon Microsoft Google BaiDu Alibaba Tencent Dropbox HP Kingsoft Huawei Cisco Crashplan IDrive Backblaze Download Sample Report @ https://www.fiormarkets.com/report-detail/82334/request-sample Market segment by Regions/Countries, this report covers United States EU Japan China India Southeast Asia Market segment by Application, Online Backup Services can be split into Personal Business Other Access Full Report With TOC @ https://goo.gl/4Vcfx3 Table of