28 November 2008

Baidu staff members sacked over paid listings

Baidu, the leading search engine in China, has sacked staff after unlicensed medical practices were allowed to buy high ranking paid listings.

At least 60 per cent of searches performed by people in China are done through Baidu, with the homepage receiving more than 100 million clicks a day, giving it a large dominant share. And unlike Google, Baidu allows companies to pay for their searches to appear higher in the organic results. People have long complained about the practise and, earlier in the month, state-run China Central Television reported the site was steering people towards expensive or unlicensed clinics.

One patient spoke out - saying he spent more than 10,000 yuan (~£950) in an attempt to cure abdominal pain. He went to an unlicensed clinic because it topped Baidu's rankings, but the treatment he received didn't have an effect. He then went to a public hospital where he was treated successfully for a tenth of the price.

It's been reported that the clinic paid Baidu around 16.50 yuan per click for their link to rank well.
Robin Li, Baidu's chief executive, told the Guardian: "Baidu employees who are found to have been involved in the scandal will be penalized.

"We have already fired people who helped fabricate documents for unlicensed suppliers.

"We have removed the key words of all four clients mentioned in the report and have begun to double-check the licences of all other hospitals and pharmacies on our client list."

Stocks in the company have fallen around 60 per cent since the news was broken, and Baidu's ad revenue has dropped by 10-15 per cent due to the removal of the sites.

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