According to Google officials in China, the hackers targeted the Gmail account of eminent Chinese human rights activists.
The internet giant, Google entered the Chinese market in 2006 by launching its China-specific search engine ‘Google.cn’. Google also made agreements with the Chinese government on certain censorship policies and thus, the company was assured to get proper support and protection from the governments. However, four years after this agreement, Google has found it the necessary requirements from the government ends had not been met properly.
The Chinese indigenous internet company, Baidu is the leading search engine in China and it has created an upper hand position in the market and gained a competitive advantage over Google. Currently, there are three leading internet search engine provider are playing in the market i.e. Baidu, Google and Yahoo. Baidu is leading in the market with a 60% market share followed by Google with 30% and Yahoo with 10% (BBC News, 2010). In such a situation, Baidu has claimed that Google’s pulling out decision is driven by financial reasons as the company failed to dominate the Chinese search engine market. In spite of the latest technology offerings and great market exposure, Google was unable to perform in the Chinese market comparing to its global operations and leadership. Within a decade the number of Chinese internet users has increased to 340 million to 10 million. In this growing market, Baidu has created its dominance over the market. However, many critics have argued that Google must give a second thought for this decision and must negotiate with government officials on this issue.
Google‘s current issue in China has become a major area of concern for the company. Google’s global market is very strong and it is dominating in most of the developing and developed countries like India, the USA, the UK, Australia, etc.