Google's Problems in China (B)

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Case Details:

Case Code : BSTR374
Case Length : 17 Pages
Period : 2000-2010
Pub Date : 2010
Teaching Note :Not Available
Organization : Google Inc
Industry : Internet Search
Countries : China, US

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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"Google has taken a bold and difficult step for Internet freedom in support of fundamental human rights. No company should be forced to operate under government threat to its core values or to the rights and safety of its users."¹

- Leslie Harris, President of the Center for Democracy & Technology², in January 2010.

"We love what the Chinese are doing as a country, in terms of growth, improving the state of lives of people, and using information. We just don't like the censorship, and we said that very publicly. What we hope is that that will change. And we hope that we can apply some form of negotiation or pressure to make things better for the Chinese people."³

- Eric Schmidt, Chairman & CEO, Google Inc., in January 2010.

Google to Exit China

On January 12, 2010, David Drummond (Drummond), Senior Vice President, Corporate Development and Chief Legal Officer of the US-based Google Inc. (Google)⁴, said in a post on the company's official blog, "Like many other well-known organizations, we face cyber attacks of varying degrees on a regular basis. In mid-December 2009, we detected a highly sophisticated and targeted attack on our corporate infrastructure originating from China that resulted in the theft of intellectual property from Google.

Google's Problems in China (B) - Next Page>>

1] Michael Liedtke, "Google to End China Censorship after E-mail Breach," www.forbes.com, January 13, 2010.
2] Center for Democracy and Technology is a US-based non-profit organization that works toward free expression and privacy in communication technologies.
3] "Google to Press China on Internet Censorship," Bloomberg News, January 29, 2010.
4] As of 2009, Google was the largest search engine in the world, with revenues of US$ 23.65 billion and a net income of US$ 6.52 billion.

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