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Baidu eats into Google's market in China

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CIOL Bureau
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SHANGHAI, CHINA: China's search market by revenue grew 53.2 per cent in the second quarter to 2.64 billion yuan ($390 million), data from technology research firm iResearch showed on Monday.

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Baidu's share of the market rose to 70.8 per cent in the second quarter from 67.8 per cent in the first quarter, as the firm ate into Google's market share.

The top Internet search company in China had recently said that it is aiming to raise its share of China's PC and mobile search market to 79 per cent next year.

Google, which has faced difficulty in China since threatening in January to quit the market on censorship concerns and after a serious hacking episode, saw its market share fall to 27.3 per cent in the second quarter, down from 29.5 per cent in the first.

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Before its high-profile spat with Beijing, Google was slowly gaining ground on Baidu. In the fourth quarter of 2009, Google's market share was 32.8 per cent versus Baidu's 64.8 per cent.

Baidu told Reuters earlier this month it saw only marginal gains if China ousted rival Google Inc from the Web search market, and was banking instead on rapid Internet adoption in that country.

Baidu reports its second-quarter results on July 21.

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