Scenarios: Will Internet majors rally behind Google in China?
China is considered to be the world’s biggest Internet market by users and it seems that Google has started a game of brinksmanship here as it mulls to quit it following hackers looking for information on dissidents broke into its China site.
What Google might have in its mind is that both global and domestic search and e-mail leaders will rally around it in calling for China to loosen a heavy-handed approach to the Internet, which includes frequent censorship and allegations of government-backed hacking.
Google, which has its main China businesses mostly stuck to search and e-mail, will most likely work on a straightforward strategy. The company feels its businesses to account for a relatively small part of its global revenue.
However there might be some other factors for global search and e-mail giants such as Microsoft and Yahoo, and big Chinese players Baidu, Sina and Sohu to undertake before they join ranks with rival Google.
With Google’s decision, Microsoft, which has invested millions of dollars in China and is pumping more resources into the country, might have a hard time withdrawing from part or all of the market. The World’s largest software company, which just a few days back launched a Chinese version of its highly hyped new search engine, Bing; could be reluctant to take any steps seen as hostile at the risk of putting at risk its wide-ranging interests.
Moving ahead, Yahoo also has a weak standing in China as of now. Yahoo, which failed at going it alone in the market, pumped $1 billion for 40 percent of Alibaba Group, which is parent of Hong Kong-listed Alibaba. com and operator of two of China's leading online commerce sites.
Yahoo CEO Carol Bartz, said, “That stake has since grown several-fold in value, and, despite a sometimes testy relationship.” The company now views Alibaba as representing its main presence in China.
Considering the size of Yahoo’s Alibaba investment and Alibaba's overwhelming reliance on the China market, there is a possibility that Yahoo will find it tough to take a stand against government Internet meddling in China and risk potential fallout for Alibaba.