Posted by: SEO Positive

Posted on: October 20, 2010 9:01 am

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Google To Terminate Contracts With Seven Large Chinese Resellers.

It is a known fact that Google had a very stringent battle with the People’s Republic of China early this year. To refresh our memories, Google was mandated by the Chinese government to censor its search results which eventually caused the inaccuracies of the search results from Google China and such mandate was viewed as the curtailment of the one’s right to be informed or right to information. Second, Google China was attacked by hackers compromising the personal data of its Gmail account members who are mostly known as Chinese activists or none supporters of the Chinese Government. It is because of these events that Google China was forced to close down and had to transfer its server to Google Hongkong. Although beaten by these tussles with China Google still remains to be the foremost internet company worldwide.

Last September 27, 2010 Google has sent one month notice of termination of reseller contract with seven large Chinese companies, such termination of contract was allegedly given without explaining the causes or reasons for termination, according to Cindy Qin, a Google spokeswoman that Google indeed issued one month’s notice of termination of reseller contract which will take effect on the 27th of October. Financial analysts have stated that Google might be in the losing end of this latest action because of the fact that the seven Chinese Adwords resellers are contributing around $225 Million in gross revenue from last year which is translated to be forty percent (40%) of Google China’s revenue. Further, analysts have stated that the loss of Google with these seven adwords resellers is considered as gain for Google China’s closest competitor the home grown Chinese company Baidu. With this termination of contracts it is expected that these seven companies are going to transfer their accounts with Baidu. This may be a loss for Google but it seems that it’s a loss that the search engine company is willing to take.

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