BEIJING, May 10, 2016 /PRNewswire/ -- Baidu, Inc. (NASDAQ:
BIDU) ("Baidu" or the "Company"), the leading Chinese language
internet search provider, reports on an examination of its search
ranking practices by PRC regulators that followed news reports and
critical public comments regarding those practices.
On or around April 30, 2016,
Chinese media reported that Zexi
Wei, a Chinese college student, had died from cancer
following unsuccessful experimental immunotherapy treatment
received at a hospital. The media and internet
commentaries also reported that Zexi
Wei had learned of the hospital and treatment program when a
paid listing for it appeared on the first page of Baidu's search
results.
Following these reports, three PRC regulatory authorities,
including the Cyberspace Administration of China, the State Administration of Industry
and Commerce and the National Health and Family Planning
Commission, sent a team of representatives to meet with Baidu
management on site and examine Baidu's business practices and
regulatory compliance. On May 9,
2016, the three regulatory authorities publicly announced
the results of their examination. They concluded among other
things that Mr. Wei found Baidu's search results, that the bidding
price by Baidu's online marketing customers is given significant
weight in search results ranking, and that certain results are not
clearly identified as online marketing. The PRC regulators
believe these practices affect the fairness and objectivity of
search results and might mislead internet users.
The regulatory authorities also requested that Baidu take
several remedial measures, including the following:
(i) to immediately modify the Company's
practice of providing online marketing services to medical,
pharmaceutical, health care and other similar businesses, and refrain from providing online
marketing services to medical organizations that do not have
requisite qualifications from competent regulatory authorities;
(ii) to modify the Company's existing
auction-based paid search practices, including using "credibility"
and "reputation" of listed parties as major factors to rank search
results by May 31, 2016, and
indicating clearly which search results are marketing information
and the associated risks, and limiting the percentage of marketing
information to no more than 30% on each web page; and
(iii) to establish and enhance user protection
mechanisms, including creating channels for users to file
complaints, efficiently handling complaints, ceasing services
immediately upon discovering unlawful or non-compliant information
in search results, and establishing a system to compensate users
harmed by misleading marketing information.
Baidu has taken and will continue to take measures to comply
with these requests from the PRC regulators. In addition to
the actions requested by the regulators, Baidu intends to set aside
RMB1.0 billion for the purpose of
compensating users who establish they were harmed by fraudulent
marketing information.
Baidu is fully committed to social responsibility and will
continue to improve its business practices commensurate with its
status as the leading Chinese language Internet search provider, to
provide the best and most equitable way for people to find what
they are looking for.
About Baidu
Baidu, Inc. is the leading Chinese language Internet search
provider. As a technology-based media company, Baidu aims to
provide the best and most equitable way for people to find what
they're looking for. In addition to serving individual Internet
search users, Baidu provides an effective platform for businesses
to reach potential customers. Baidu's ADSs trade on the NASDAQ
Global Select Market under the symbol "BIDU". Currently, ten ADSs
represent one Class A ordinary share.
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates," "confident" and similar statements. Baidu
may also make written or oral forward-looking statements in its
periodic reports to the U.S. Securities and Exchange Commission, in
its annual report to shareholders, in press releases and other
written materials and in oral statements made by its officers,
directors or employees to third parties. Statements that are not
historical facts, including statements about Baidu's beliefs and
expectations, are forward-looking statements. Forward-looking
statements involve inherent risks and uncertainties. A number of
factors could cause actual results to differ materially from those
contained in any forward-looking statement, including but not
limited to the following: our growth strategies; our future
business development, including development of new products and
services; our ability to attract and retain users and customers;
competition in the Chinese and Japanese language Internet search
markets; competition for online marketing customers; changes in our
revenues and certain cost or expense items as a percentage of our
revenues; the outcome of ongoing, or any future, litigation or
arbitration, including those relating to intellectual property
rights; the expected growth of the Chinese language Internet search
market and the number of Internet and broadband users in
China; Chinese governmental
policies relating to the Internet and Internet search providers and
general economic conditions in China, Japan
and elsewhere. Further information regarding these and other risks
is included in our annual report on Form 20-F and other documents
filed with the Securities and Exchange Commission. Baidu does not
undertake any obligation to update any forward-looking statement,
except as required under applicable law. All information provided
in this press release and in the attachments is as of the date of
the press release, and Baidu undertakes no duty to update such
information, except as required under applicable law.
For investor and media inquiries, please contact:
Sharon Ng
Baidu, Inc.
Tel: +86-10-5992-4958
Investor inquiries email: ir@baidu.com
Media inquiries email: intlcomm@baidu.com
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SOURCE Baidu, Inc.