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Yahoo! My Yahoo! Mail More Yahoo! Services Account Options New User? Sign Up Sign In Help Yahoo! Search web search Home Singapore Asia Pacific World Business Entertainment Sports Technology Baidu promotes fake drug sites: Chinese TV station Reuters - 2 hours 13 minutes ago Send IM Story Print SHANGHAI - China's main state-run television station accused the country's top Internet search engine Baidu Inc of directing users to websites that sell counterfeit drugs, the People's Daily reported on Monday. CCTV reported on Sunday that Baidu and other search engines had profited from promoting three websites offering counterfeit drugs that duped more than 3,000 people in China, said the newspaper, the mouthpiece of the ruling Communist Party. Baidu declined comment on the accusation. Its shares trading in the U.S. slipped about 4 percent to $70.50 in early Nasdaq trading. The report comes two days before Baidu is expected to issue its quarterly results as it capitalizes on its new advertising system and gains from Google Inc's spat with China. [ID:nTOE66I00P] In the second quarter, Baidu had a 70.8 percent share of China's search market, according to iResearch data. Baidu's shares have jumped more than 75 percent this year. A source familiar with the situation told Reuters on Monday the sites exploited a loophole in the system, piggybacking on legitimate websites to gain access to buy keywords. The source could not be identified due to the sensitivity of the matter. In 2008, CCTV aired a similar expose on Baidu selling links to unlicensed medical sites with unproven claims for their products. The company's Nasdaq-listed shares subsequently fell more than 20 percent and its fourth-quarter earnings were hit, prompting Baidu Chief Executive Robin Li to publicly apologize. As a result of the scandal, Baidu had overhauled its operations and sacked staff involved. In the last few years, China has been beset by a series of product safety scandals ranging from tainted milk to fake pharmaceuticals. The government has announced several crackdowns but the problems persist, aided by a lack of surveillance, generally poor quality standards and corruption. Recommend Send IM Story Print Related Articles US-TECH Summary Reuters - 55 minutes ago Nuance plans voice-activated iPhone apps for UK Reuters - 56 minutes ago Jobs' offer of free iPhone cases eases Apple PR woes: analysts Reuters - 1 hour 20 minutes ago Baidu promotes fake drug sites: Chinese TV station Reuters - 2 hours 13 minutes ago Apple expands iPad sales to 9 more countries Reuters - 2 hours 14 minutes ago News Search Top Stories Boeing, Airbus take orders worth 9 bln pounds Moody's downgrades Ireland debt rating Philips reports six-fold rise in profits Philips report big profit on consumer electronics Matt Bettencourt captures PGA's Reno Open More Top Stories » Related Full Coverage Internet Portals & Search EnginesLatest development in the online world All Full Coverage » Most Popular Most Viewed Most Recommended Paris Hilton caught with cannabis in handbag World pays tribute to Mandela at 92 Boeing's Dreamliner completes first flight outside US Boeing, Airbus take orders worth 9 bln pounds Emirates Airline to order over 30 Boeing 777s: report More Most Viewed » Reclusive top mathematician turns down prize, again Paris Hilton caught with cannabis in handbag Germany's 'Octopus oracle' keeps perfect record Who's right - the dolphin or the octopus? 3 Russian spy suspects due in US court More Most Recommended » Elsewhere on Yahoo! Financial news on Yahoo! Finance Stars and latest movies Best travel destinations More on Yahoo! News Home Singapore Asia Pacific World Business Entertainment Sports Technology Subscribe to our news feeds Top StoriesMy Yahoo!RSS » More news feeds | What are news feeds? Also on Yahoo Answers Groups Mail Messenger Mobile Travel Finance Movies Sports Games » All Yahoo! Services Site Highlights Singapore Full Coverage Most Popular Asia Entertainment Photos World Cup 2010 Copyright © 2010 Yahoo! Southeast Asia Pte. Ltd. (Co. Reg. No. 199700735D). All Rights Reserved. Terms of Service | Privacy Policy | Community | Intellectual Property Rights Policy | Help

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