Chinese Probe Casts Chill Over Baidu's Advertising Business
- Online, industry and health regulators form investigative team
- Questions about placement of paid ads from health companies
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A Chinese government investigation into Baidu Inc.’s search business following the death of a cancer-stricken college student threatens one of its largest sources of advertising revenue.
Health and Internet regulators launched a probe into the Chinese online giant’s practices after computer science major Wei Zexi sought out a controversial treatment advertised among search results. But the procedure failed and the 21-year-old penned online posts blaming Baidu before his death, triggering an online furore in a country that’s seen its share of health-related scandals over the years.