Chinese internet authorities are investigating search group Baidu after the death of a computer-science student who received dubious medical treatment advertised in online search results, which sparked outrage among netizens.
Shares in Nasdaq-listed Baidu fell 7.9 per cent on Monday after the Cyberspace Administration of China announced that it would lead a taskforce investigating this incident as well as broader operating issues at the company.
Wei Zexi, a university student in Shaanxi province in central China, died on April 12 from a rare form of cancer called synovial sarcoma. After chemotherapy and radiation failed to cure him he used Baidu to search for alternative treatments, according to a statement from his parents reported by Caixin, a respected business news website.