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February 25, 2014

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Court upholds damages ruling against Qihoo

Anti-virus company Qihoo 360 Technology Co has been ordered by the Supreme People’s Court yesterday to pay 5 million yuan (US$819,672) in damages to rival Tencent for illicit competition.

The SPC upheld the verdict by the Guangdong Province Higher People’s Court after Qihoo appealed against that ruling in a lawsuit seen as the most important anti-monopoly spat between two Internet companies.

Tencent, China’s largest Internet company, initially asked for 125 million yuan in compensation from Qihoo. In April last year the Guangdong Province Higher People’s Court ordered Qihoo to pay 5 million yuan, a ruling Tencent appealed against.

Tencent said it suffered economic losses after Qihoo blocked users from installing Tencent’s related services and this action blocked users from viewing and subscribing to its value-added services.

“Qihoo was found to have been preventing users from installing and subscribing Tencent’s value-added services and has been leading users to install Qihoo’s own anti-virus tools, which constitutes illicit competition,” the court said in the verdict yesterday.

Qihoo argued it was defending its own business interests and said in an official statement yesterday that Tencent used its monopolistic position in the online chat market and forced users to install Tencent’s own Internet security tools, which curbed growth for Qihoo.

 




 

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