6.4 In the Chinese Internet search market, Baidu is the largest firm, with a market share of...
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6.4 In the Chinese Internet search market, Baidu is the largest firm, with a market share of over 55 percent. Qihoo 360 is the second largest, with a 28 percent share, and Sogou is the third largest, with a 13 percent share. The Chinese competition authorities have accused Sogou of setting unfairly high prices. They have not, however, made similar charges against either Baidu or Qihoo 360. Presuming Sogou’s prices are “unfairly high,” do the managers of Sogou face a legal problem even though their market share is less than 15 percent?
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