If Google does decide to leave China it will be a big opportunity for Microsoft’s search engine Bing, the Wallstreet Journal reported today. Microsoft has vowed to stay in China and abide by local laws. Essentially saying they are willing to censor all sensitive material.
Google is still negotiating with Chinese officials but it seems that the two are at a stalemate. China is not going to budge on its policies of expression and Google has repeatedly voiced its views on censorship. If Microsoft were to sweep in and promote itself after Google’s exit, analysts say it could cause public relations trouble for Microsoft. Google will appear as a champion to free media and Microsoft will be called a sycophant. However, putting the PR aside, this could be exactly the opening Microsoft needs. China is the largest market in the world and with Google out of the way; they could be laughing all the way to the bank.
Bing has not done all that well in China. Baidu, the Chinese search engine, currently holds 58% of the market in China and Google has about 36%. Although, a deal has been launched with Motorola where all cellphones sold in China will have Bing as their default search engine.
Some analysts have predicted that Google is bluffing, but one thing is clear: the damage done to the relationship with the Chinese government is very real. China sees Google as backing out of a contract. Google knew the laws of the land and decided to do business within the context of those laws. The reality is now, that Google could have talked its way out of an enormous market.
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