China Unicom to ax Google search from mobile handsets

China Unicom (0762.HK, 600050.SH, CHU.NYSE), the country’s second-largest mobile operator, will remove Google’s (GOOG.NASDAQ) search function from handsets it develops using the US firm’s Android-based operating system, the Financial Times reported. The Chinese firm’s move represents the first major fallout from Google’s decision to end censorship of search results in the mainland and instead redirect users to an uncensored Hong Kong site. China Mobile (0941.HK, CHL.NYSE) offers handsets that run a system based on Android, with Google one of several search engine options, but it has yet to comment on its plans. Analysts said China Unicom’s business might suffer following the termination of its Google partnership. The company reported a net profit of US$1.4 billion for 2009, down 72% year-on-year due to start-up costs tied to its 3G business. Unicom wants to bring in 10 million 3G customers this year, but subscriptions have been slowing in recent months. The company put this down to its focus on “quality” users who use a lot of data.