China's answer to Google in search engine business, Baidu having about 70 per cent of the country's search engine market, has come under intense pressure from the media and lawyers as it is accused of blocking websites that refused to pay for listings in its search results as well as running advertisements from unlicensed medical websites among its search results.

After being criticised for more than a month, the Nasdaq-listed Baidu was exposed by state-owned China Central Television of using its near monopolistic position to block websites that refused to pay for listings in its search results as well as giving top listings to unlicensed medical websites among its search results.

A group of lawyers, said they will launch an anti-monopoly lawsuit against the company's business practices and it has already received the support of over 50 companies and it intends to file a group complaint by the end of the year once the number crosses 100.

Baidu, who has had the backing of the Chinese government all along, has denied most of the allegations and promised to overhaul its business operation by planning to introduce a new advertising system where sponsored search results would be marked more clearly.

Baidu's CEO, Robin Li, told the Xinhua news agency that the company has taken appropriate steps and has sacked staff and said "We have removed the key words of all four clients mentioned in the report and have begun to double-check the licenses of all other hospitals and pharmacies on our client list."

"Baidu employees who are found to have been involved in the scandal will be penalised...We have already fired people who helped fabricate documents for unlicensed suppliers," he added.

The state run China Central Television, has now attacked all Internet search engine providers in China, which includes Google, who holds a meager 26 per cent market in China by showing clips of advertisements from non-licensed medical websites being run on Google's China website.

CCTV's latest report is trying to project that its campaign is not directed at Baidu, but on illegal pharmaceutical companies and Google China has responded by the contents of its ads are strictly monitored and has removed the ads mentioned in the CCTV report and has issued strict guidelines to all pharmaceutical companies that its advertisement must not show that diseases can be cured, which is in violation of Chinese laws.

Most of the medical ads guaranteed 95 per cent to 100 per cent cure for most ailments.

CCTV had shown patients who were directed to expensive hospitals for treatments after being exposed to Baidu's medical ads where one patient spent more than 10,000 yuan at a Baidu ad recommended clinic for the unsuccessful treatment of abdominal pain, which was cured at a public hospital costing him 100 yaun.

However, after the scandal broke out, the company's share price on NASDAQ fell by approx 25 per cent and has been slipping ever since.