Subscribe to our newsletter

Alibaba’s Aliyun search engine raises the stakes in its challenge to Google and Android

GOOG, EBAY, YHOO, AMZN, MSFT, BIDU, QIHU

Chinese e-Commerce giant Alibaba has rolled out its own search engine in a move that will deepen the strain between it and Google NASDAQ:GOOG.

Last year, Google took action against Alibaba’s Aliyun OS ahead of a scheduled device launch with Acer TW:2353. The incident became a highly public one as Android boss Andy Rubin and Alibaba’s CTO exchanged words.

Rejecting Google’s claims that Aliyun OS is a “forked version” of Android, Alibaba pledged not to deviate from its mobile strategy. The company did move to put some distance between it and Aliyun OS by spinning off the division.

Alibaba’s strength in e-Commerce and cloud computing often results in comparisons to eBay and Amazon as western equivalents, but, as it diversifies its product portfolio it is coming into direct competition with Google.

.The new Aliyun search site, for example, offers specific searches for news, pictures and a beta version of maps. Alibaba began integrating Aliyun’s mapping service into its Taobao C2C marketplace last October.

An Aliyun spokesperson confirmed that the search engine is developed and maintained by the Aliyun Business Unit, but declined any further comment.

This is not the 1st time that Alibaba has jumped into the search game. It teamed up with Microsoft NASDAQ:MSFT on a shopping-focused e-Tao search engine in Y 2010.

The company also had early help from Yahoo NASDAQ:YHOO, which used to control a 40% stake in Alibaba and has licensed its partner to operate the Yahoo China brand.

Alibaba is taking steps to regain more control, initiating a program to buy back Yahoo’s stake.

Note: Google is not the only target. Chinese search leader Baidu NASDAQ:BIDU will also face increased competition from an Aliyun-powered search engine. Baidu also operates its own cloud-focused mobile operating system, but it layers the OS on top of Android in order to remain compatible and stay on friendlier terms with Google.

After Google left the Chinese search market in Y 2010, Baidu had a relatively unchallenged position. But, last Summer, Qihoo 360 NYSE:QIHU stepped onto the scene launching its own search service. The Baidu/Qihoo rivalry heated up quickly, and the government eventually intervened by establishing some industry ground rules for competition.

The next few months should be eventful ones for Alibaba, as its founder Jack Ma is set to step down in May.

Recently, the company restructured into 25 smaller divisions in order to enable faster responses to competitive threats and provide additional opportunities for its leaders to develop.

Mr. Ma himself said that he wants to step aside for the “next generation” of Alibaba management. When he does, his replacement will inherit an e-Commerce empire big enough to go up against US tech companies.