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Tencent Vs Qihoo 360 Lawsuit: Tencent Wins

(CRI Online)

17:14, March 28, 2013

The High People's Court of Guangdong Province on Thursday announced that Chinese online security software developer Qihoo 360 lost the lawsuit that it filed against Tencent, China's largest instant messaging software developer, over abuse of its dominant market position.

The Guangdong High People's Court said that Qihoo 360 has to pay for all litigation costs totaling 790,000 yuan, adding that Tencent has not abused its dominant market position because it operates in a global market in which competition exists.

On April 18, 2012, Tencent was accused of abusing its dominant market position in a case filed by Qihoo 360. Qihoo 360 also accused Tencent of violating the country's anti-monopoly laws by, among other actions, introducing bundle sales to prevent its users from installing Qihoo's software.

Having lost the lawsuit, Qihoo 360 announced that the company would most likely appeal to the Supreme People's Court, China's highest court, after considering the verdict of the first trial.

Qihoo 360 added that the facts of the case revolved around inadequate creativity among China's Internet industry and weak competition. Qihoo 360 argued that there was a need to regulate companies who abuse their dominant market position and create a better judicial environment.

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