Tencent wins third suit against Qihoo 360

The lawyer representing Tencent, the plaintiff, answers questions after the trial against Qihoo 360. Qihoo was fined 5 million yuan ($802,568) as compensation to Tencent and was asked to apologize on its official website and via several major portal websites and newspapers. [Photo / Xinhua]

GUANGZHOU - Tencent, China's biggest Internet company, has won its third lawsuit against Qihoo 360, a leading Chinese antivirus software developer, over the latter's unfair competition, according to a court ruling issued on Thursday.

Qihoo 360 was accused of breaching faithfulness as well as equal competition and was obvious in malicious competition against Tencent, a Guangdong Provincial High People's Court ruling said.

Qihoo 360 seriously disturbed the Internet business order and set down the roots of a long and drawn-out legal war between the two companies, it added.

Qihoo 360 was also fined 5 million yuan ($802,568) as compensation to Tencent and was asked to apologize on its official website and via several major portal websites and newspapers.

The compensation sum is the highest that has ever been ordered in Internet competition lawsuits in China, said Zhang Xuejun, the chief judge.

Qihoo 360 held a news briefing in Beijing on Thursday afternoon immediately after the trial, saying it will appeal to the Supreme People's Court.

Zhou Hongyi, CEO of Qihoo 360, said that the ruling showed a tendency of regional protectionism and his company will file the suit to the end.

Tencent is based in the coastal Shenzhen city of South China's Guangdong province.

While Xu Yan, assistant general manager of Tencent, hailed the ruling as it stipulated the competitive rules of the Internet industry and sent a strong signal of protecting the faithful management of enterprises.

"Our biggest feeling is that the technology and management models of the Internet update too quickly and the legislation lags behind the market performance," said chief judge Zhang Xuejun.

Consequently there are loopholes and gaps in laws concerning the operation of Internet business as the current regulations do not have specific stipulations of certain market behaviors, Zhang said.

The trial of a series of similar cases in recent years provides a boundary for unordered Internet competition, said Wang Guanxiong, a renowned IT manager.

Earlier reports

Qihoo 360 loses suit against Tencent

Tencent, Qihoo 360 face off in court

China to investigate law violation in Tencent-Qihoo 360 spat

Compromise in sight in Tencent-Qihoo 360 spat

Tencent stock a fatality of war

Netizens cry foul as Tencent and 360 battle it out

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