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Thursday, September 18, 2008

Baidu Claims Alibaba Spread Rumors, Threatens Lawsuit

Thursday, September 18, 2008
A spokesman from Baidu (Nasdaq: BIDU) claimed on Tuesday that Alibaba Group published posts on September 14 with misleading titles about Baidu's "PR protection agreement" with food product manufacturer Sanlu on the websites of consumer-focused e-commerce site Taobao.com and business-to-business e-commerce company Alibaba.com Ltd. (1688.HK), reports Sohu. The reports said Sanlu milk powder planned to sign a RMB 3 million advertising agreement with Baidu if Baidu would remove Sanlu's negative search results. Baidu said it retains the right to sue Alibaba Group for defamation, the report said. Baidu also announced on its online forum channel Baidu Post Bar on September 13 that it refused to sign Sanlu's proposed PR protection agreement.

Alibaba Group welcomed the Baidu lawsuit and said that revealing truth to the public is its responsibility, reports Sina. Alibaba deleted the reports on Tuesday night from the Taobao.com and Alibaba.com Ltd. homepages, reports ChinaByte.

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