Chinese search engine Baidu plans post-scandal overhaul
28/11/2008 16:38
China's Nasdaq-listed Internet giant, Baidu, announced an overhaul plan
today after it was accused of letting unlicensed medical products suppliers buy
higher rankings.
"We have removed the key words of all four clients mentioned
in the [China Central Television] report and have begun to double-check the
licenses of all other hospitals and pharmacies on our client list," said Baidu
chief excecutive officer Li Yanhong, also known as Robin Li.
In an exclusive
interview with Xinhua, Li said his company would take all unlicensed suppliers
off its ranking.
"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," he said, without elaborating.
Li said
Baidu would launch a new ad system as soon as possible to give more precise
information to Internet browsers. The new system, "Phoenix Nest", was intended
to better correlate and rank search results, he added.
CCCTV reported on Nov.
15 that several patients visited hospitals or tried medicines that got high
ranks in Baidu searches, often spending huge sums for ineffective
treatments.
A Beijinger surnamed Li complained to CCTV he spent more than
10,000 yuan (US$1,430) at a top-ranking clinic listed at Baidu, but his lower
abdominal pain persisted. He said he was later cured at the People's Hospital,
one of the leading hospitals in Beijing, for just 100 yuan.
CCTV said the
unlicensed clinic paid Baidu 16.56 yuan per click to get the top
rank.
Baidu.com receives more than 100 million clicks daily.
Baidu employs
7,000 people and accounts for about 70 percent of China's search engine market.
The scandal has driven its shares to a two-year low.
Xinhua
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