Chinese Baidu Search Engine May Face Tougher Regulations

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Internet search engine Baidu Inc. is likely to get tougher regulations following criticisms from China's state-run media.

A 30-minute report exposes how easy it is to register and promote a fake website and to carry out fraud on Baidu's search platform.

An undercover reporter was allegedly shown how to carry out Internet fraud by a Baidu staff member.

The report also exposes Baidu's unethical bidding system for keyword advertisements, which misleads companies into bidding more for top search ranks.

Baidu became the dominant search engine after Google pulled out of China.

Its shares dropped nearly 4% after the Monday broadcast.

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