In China, sites are required to obtain an Internet content provider license from the government to operate; Google.cn shares a license with another Chinese site, and that could be a problem.
A report on Interfax recounted the latest issues Google faces with its China operations. Currently, Google shares an ICP license with a Chinese information site, Ganji.com.
Interfax also provided comments by a Google spokesperson about the situation:
“Google was authorized to share the Internet content provider (ICP) license through cooperation with its owner Ganji.com,” said Laura Song, Google (China) PR representative. Under their cooperation, Google provides Ganji.com with technical support, by means of exchange.
Meanwhile, Song denied a recent report in a Chinese newspaper that Google.cn was operating without a license due to trouble with regulators.
“Google’s business operation always complies to the regulations and laws of the Chinese authorities,” said Song. “The company would not be able to share the license with Ganji.com if it had not been approved by the local government.”
Yahoo and eBay both avoided that problem by investing in local companies. Yahoo owns 3721 Technologies and used its license to operate; the Chinese firm Alibaba now owns Yahoo China. eBay’s purchase of EachNet gave it the necessary ICP license.
The Chinese government does not permit foreign companies to directly operate an Internet service in the country. Deals like Yahoo’s and Google’s are common, where an investment or an exchange of services provides the foreign firm with an ICP license.
Google.cn presently displays an ICP license at the bottom of its homepage, and it is the same number shown on the main page for the Ganji.com portal.
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David Utter is a staff writer for Murdok covering technology and business.
