Baidu - leading Chinese Search Engine was sued by medical B2B service Qmyy for blocking their site in Baidu search results. Qmyy demands 1.106 million yuan ($161,460) for the loses caused by their absence in search results. According to ChinaDaily the lawsuit was filed after failure in attempts to get out-of-court agreement. Baidu explains that Qmyy’s site was blocked because it contains ‘junk information’.

Baidu has 65% share in search market in China, it has great potential in perspective of growth of number of Internet users in PRC, at the moment it is about 250 million people (about 1/6 of whole population).

-mw

Hitwise published the results for US search market. According to them Google reached 71,70% and at the same time gained 7,21% of whole market comparing October 2008 to the previous year, the same month. Google’s growth is common loss of Yahoo, MSN and Ask, which lost as follows: -3,91%, -2,02%, -1,23%.

That only confirms that Google’s growth is very dynamic and at the moment outclasses other search engines. There are speculations that if Google continue to grow in that pace it can soon reach 100%.

I think it is not possible for two reasons, even if shown as percentage. Firstly, Google’s algorhytm is not perfect, and a lot of data is is hidden under cover of SEO-pulled-out results, so in more advanced searches people just have to use other search engines. Secondly, there are countries where native search engines are more popular, for example (Baidu in China, Yandex in Russia). Even considering only US market it doesn’t look probable, mainly for the sake of so-called invisible hand, and too big value of whole market for no competitor wanting to get a piece of it.

It is also interesting, if in October there was any significant growth in the number of queries (it is probable that there was one connected with financial crises - like in other important moments people just wanted to learn something more). If there was such a growth, these results might be a little bit blurred - Google as a most popular search engine would take advantage of it by having its results multiplied, especially when shown as percentage.

-mw

P.S. As Hitwise marks: Results are based on four-week rolling periods (ending Nov, 1, 2008; Sep. 27, 2008; and Oct. 27, 2007) from the Hitwise sample of 10 million U.S. Internet users. As MSN they counted searches executed on Live.com and MSN Search, but not the searches executed on Club.Live.com.

Wall Street Journal reported that two leading web-serach companies are negotiating with Justice Department in order to dispel State’s doubts on advertising agreement proposed by G-gle and Y-hoo in June. In WSJ we can find infromation that talks are in early stage and that simultanously preparations to the lawsuit are under way. U.S. has got some concerns about G-gle monopolizing the online advertising market.

Agreement reached in June assumes that Y-hoo will display ads provided by Google beside to Yahoo!’s search results and choose the search terms for which Google paid search results will be displayed. Realization of this agreement would let Y-hoo to improve its financial results, although in fact it does mean that G-gle would pay Y-hoo for increasing its market share.

You can get back to Y-hoo press release and post on Yodel Anecdotal on the agreement and the same at G-gle’s side: press realese and post.

-mw