Google's share of China search revenue in decline

Google’s (GOOG.NASDAQ) share of Chinese internet search revenue dropped to 30.9% in the first three months of the year from 35.6% in the last quarter of 2009, an indication of the commercial impact of the US firm’s fallout with Beijing, the Wall Street Journal reported. Google’s share had increased in all but two quarters since 2006. Local rival Baidu (BIDU.NASDAQ) saw its share rise to 64% in the first quarter compared to 58.4% in the previous quarter, according to Beijing-based research firm Analysys International. Following Google’s decision to shift its Chinese site to Hong Kong and cease obeying government censorship requirements, analysts tipped a proliferation of smaller local search players to benefit in addition to Baidu. However, Sohu.com’s (SOHU.NASDAQ) Sogou search engine saw its revenue share drop to 0.7% from 1% in the first quarter, while Tencent’s (0700.HK) Soso dropped to 0.4% from 0.7%.