After reports that Google was running dangerously close to missing it’s application deadline with the China State Bureau of Surveying and Mapping, company spokewoman Jessica Powell said on Thursday that the company was in talks with the Chinese government about “how it could continue to offer a maps product in China.”
Update: People’s Daily Online is now reporting that Google has failed to apply for a license, and that “Google Maps is very likely to cease operations in China.” Government officials say that those without a license will be shut down on July 1.
Last year the Chinese government set rules in place mandating that any mapping or location services had to apply for official approval in order to remain in operation.
This of course is not the only problem faced by Google in China recently, as its market share in the country has fallen to 19.6% last quarter from a 2009 peak of 35.6%. In addition, we wrote earlier this week that popular Chinese web portal Sina has replaced Google’s search with it’s own search solution.
And if all those problems weren’t enough, Xinhua reported yesterday that three companies affiliated with Google have been investigated for tax fraud. Citing The Economic Daily newspaper, Xinhua went on to say that Google itself is under investigation as well. Google claims to be in compliance with local tax laws.
China’s leading search provider Baidu, the logical benefactor of any Google set-backs in the country, is currently facing some problems of its own. Despite problems, Baidu still enjoys a high 83.6 percent of search market share in China.
Google is losing its shine in China and the reason isn’t about poor product quality but more on the strained relationship it has “built” over the past one year with the authorities.
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