Baidu is the greatest search engine in China. This was recently involved in a scandal of paid listings by unlicensed clinics and drug manufacturers. Once, the company had around 60% of the search engine market of China. This is supposed to change now and Baidu is accused for increasing the ranking of four unlicensed clients working in the medical field in search engine market. Both the image as well as the revenue of the company had been badly affected due to this. The revenue had been dropped by around 15%.
At the same time, Baidu has announced that they have already fired people who supplied documents for these unlicensed clients. When the search engine rankings of the unlicensed clients increased, people had to spend a lot of money. Some people had even reported that, they have once spent lot of money in treatment in these clinics. After such ineffective treatments, they were able to recover from their problems by spending very little money in public hospital.
The end result of this is that, the scandal has affected Baidu’s revenue. The stocks of the company fell to around 60%, when people realized the consequences of the unlicensed medical advertisements came through this search engine. Baidu has announced that, they have not excluded those customers who had not paid for the keywords.
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