In a statement, Baidu said it had started an internal investigation into the problem, pledged to co-operate with regulators and expressed a “sincere apology for hurting the feelings of users and other customers”.
Baidu's Nasdaq-listed shares suffered a 25 per cent fall on Monday following a barrage of criticism on state-run television channels at the weekend, a sign that its business model could be open to challenges from the government.
Unlike most search engines, Baidu mixes sponsored links with “genuine” search results without marking the sponsored links clearly.
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