Resellers confirm Google termination
By Zhu Shenshen |
November 6, 2010, Saturday
|
Print Edition
Print Edition
GOOGLE Inc has terminated all business connections with its seven former authorized advertising resellers in east China and their clients, the resellers confirmed yesterday.
In September, Google gave the resellers one month's notice of its decision to terminate the contracts, with the cancelation due to take effect on October 27. Both sides then tried several rounds of negotiations after that date to secure a new deal but without success.
"We are disappointed about the result, and we will take further action after internal discussions," the resellers said yesterday.
Marsha Wang, Google China's spokesperson, didn't return phone calls yesterday.
In an earlier statement, Google said it is "actively seeking new resellers."
The seven resellers, including Hangzhou eCentral, Wenzhou Zhongzi Futou Technology and Ningbo 5ENET Technology, were notified by e-mail on September 27 that their reseller status would be revoked a month later.
They claimed to be "unfairly treated" by Google, which announced recently it would restructure distribution channels in the Chinese mainland. They alleged that some Google China's officials had abused their powers for personal interests and caused the seven firms to lose their status. The firms planned to reveal evidence to back up their allegations next week.
The seven firms had more than 10,000 customers and provided about 40 percent of Google China's ad income.
The United States-based search giant is losing market share on the mainland to rivals, including Baidu.com Inc. By the end of the second quarter, Google China's share was 24 percent, a fall of 6 percentage points from a year ago, said Beijing-based Analysys International.
In September, Google gave the resellers one month's notice of its decision to terminate the contracts, with the cancelation due to take effect on October 27. Both sides then tried several rounds of negotiations after that date to secure a new deal but without success.
"We are disappointed about the result, and we will take further action after internal discussions," the resellers said yesterday.
Marsha Wang, Google China's spokesperson, didn't return phone calls yesterday.
In an earlier statement, Google said it is "actively seeking new resellers."
The seven resellers, including Hangzhou eCentral, Wenzhou Zhongzi Futou Technology and Ningbo 5ENET Technology, were notified by e-mail on September 27 that their reseller status would be revoked a month later.
They claimed to be "unfairly treated" by Google, which announced recently it would restructure distribution channels in the Chinese mainland. They alleged that some Google China's officials had abused their powers for personal interests and caused the seven firms to lose their status. The firms planned to reveal evidence to back up their allegations next week.
The seven firms had more than 10,000 customers and provided about 40 percent of Google China's ad income.
The United States-based search giant is losing market share on the mainland to rivals, including Baidu.com Inc. By the end of the second quarter, Google China's share was 24 percent, a fall of 6 percentage points from a year ago, said Beijing-based Analysys International.
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