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November 11, 2010

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Bitter online war seen to end

TENCENT Inc allowed most users' QQ software to be compatible with Qihoo's 360 security tool by yesterday evening, signalling that the bitter battle in the Chinese Internet industry was close to being resolved.

Qihoo, with more than 300 million users, claimed in September that Tencent was scanning users' documents through QQ, and last week launched a tool called Koukou Guard to block QQ plug-ins. In response, Tencent, with more than 1 billion instant message user accounts, made QQ services incompatible with Qihoo's 360 service last week.

The bitter battle between the two Chinese firms forced users to choose between QQ and 360. The standoff raised concerns among 400 million Chinese netizens and caused inconvenience and safety issues.

"With the intervention by regulators including the Ministry of industry and Information Technology, QQ is compatible with 360 now," Qihoo said in a statement sent to Shanghai Daily last night.

Tencent confirmed the government intervention and said QQ is now compatible with 360 on computers without the Koukou Guard tool, which was a "malicious software to QQ."

The Koukou Guard, which Qihoo has now disabled from being able to download on its website, has been installed in about 5 million computers nationwide, less than 1 percent of the total QQ user base, before the battle.

Meanwhile, Shenzhen-based Tencent said its third-quarter profit rose 51 percent annually 2.15 billion yuan (US$323.9 million), thanks to strong growth for its online games.

Tencent was ranked No. 1 with 27 percent share of the domestic market, according to Analysys International, a Beijing-based research firm.

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