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GOOGLEs PROBLEM IN

CHINA

Submitted by:

Shashank Chauhan

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HISTORY

Founded by : Larry Page and Sergey Brin students of Stanford University,

California, USA.

Come up with an algorithm called PageRank

Realized that the search result provided by BackRub were superior than

others. Named the search engine Google and released the first version on Stanford

University website in August 1996.

Co-founder of Yahoo! David Filo encouraged them to start a search engine

company.

A faculty of Stanford introduced them with Andy Bechtolsheim co-founderof Sun Microsystems.

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He was impressed and handed over a check for US$100,000 in favor of Google Inc.

Google opened its first office in Menlo Park, California in September 1998.

There after in 1998 they come up in the top 100 search engines.

By 2000 Google also introduced a self service advertisement program called

Adwords.

In 2002 company comes up with an agreement with AOL to which Google will

provide search results and AOL placed banner advertisements from Google on its

website.

By February 2004, Google expanded its web index to around six billion items. On 29

April 2004 filed an application with US Securities exchange Commission (SEC) for

initial public offering & raise US$1.2 billion in August 2004.

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INTERNET in CHINA(REGULATING BODIES)

Internet in China is guided be complex laws and regulations.

Ministry of Information Industry (MII) operates networks to connect to theglobal internet.

The legal regulation comprises prohibitions issued by multiple bodies:

Central Propaganda Department, Department of Commerce

Department of Telecommunication

General Administration of Press and Publication (GAP)

Ministry of Culture, Ministry of Information Industry

Ministry of Public Security

Public Security Bureau

State Administration of Radio, Film and Television

State Council Information Agency

State Secrets Bureau

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FORBIDDEN SEARCHS IN CHINA

Chinese government does not allow the free access to various contents

like:

Tiananmen Square

Tibet Independence/ Dalai Lama Falun Gong

Political Status of Taiwan

Human Rights

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GOOGLE in CHINA

Began its operation in September 2000 by offering 24 million web pages in

Chinese language.

By 2002 gained lot of popularity.

By 2003 Google ranked #1 with share of 34.8%

In September 2002 government was installing a new filtering softwarecontaining specified words. They installed this software in four public

access networks that blocked GOOGLE.

REASON: Users of Google was accessing the restricted pages by

government through cached pages.

There by the search speed drastically goes down and sometimes not evenaccessible.

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In September 2004 Google launched Google News, by November 2004

Chinese authorities blocked the news in English.

Thereafter Google was unreachable 10% of the times.

Elliot Scharge, Vice-president, Google communucation and Public Affairs

said Google was seven times slower than its competitor Baidu.

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MARKET SHARE

Google was continuously loosing market share.

In 2003 Baidus share was 2.5% of the internet search market.

By 2005 Googles share was below 30% while Baidus share in the market

was 46%.

MARKET SHARE (%) BEIJING IN JUNE 2005

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MARKET SHARE (%) SHANGHAI

IN JUNE 2005

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MARKET SHARE (%)

GUANGZHOU IN JUNE 2005

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GOOGLE COME BACK

Because of lucrative market and size Google wanted its major presence in

China.

Google felt only its local presence in China could provide a better and

more reliable service and for that they need an Internet Content Providerlicense.

In April 2005 they got the license and Google announces its opening of

representative office, R&D and registered URL- www.google.com.cn

http://www.google.com.cn/http://www.google.com.cn/

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FILTERING & GOOGLE

Filtering search result was against Googles policy but in order to capitalize market

they have done that.

ANALYST POINTS OUT:

They pointed out that not only in China Google had done in other countries also:

GERMANY : Google followed the orders of government in restricting references to

site that denied the Holocaust.

FRANCE : sites that encouraged racial hatred were prohibited.

UNITED STATES : US practiced censorship to Digital Millennium Copyright Act

and Google assisted the authorities in checking copyright infringements.

Whats important to users is access of information, were giving them that, and we think thats the

most information. Wed like to give to give all the information, but we just cant.

-Peter Norvig

(Director of Research, Google)

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LAUNCH OF GOOGLE.CN

In January 2006 google.cn was officially launched.

Google maintained its stand on protecting user policy.

Thus modifying its search capabilities according to Chinese governmentgives Google to access one of the most lucrative market in the world.

After the downfall of market share it will be tough to regain market share

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WEBSITES NOT LISTED IN

GOOGLE.CNWebsite TypeBacardi.com Alcohol

Bignews.org News

Chinesenewsweek.com News

Collegehumor.com Humor

Date.com Dating

Falunasia.com Advocacy

Funnyjokes.com Humor

Hightimes.com Drug UseHrw.org Advocacy

Libertytimes.com.tw News

Mm52.com Entertainment

Netfirms.com Webhosting

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WEBSITES NOT LISTED IN

GOOGLE.CNWebsite Type

News.bbc.co.uk News

Omnitalk.com Community

Sonicnet.com Music

Time.com News

Voa.gov Government