A three-year long legal war between two of China’s biggest Internet giants has finally come to a close. Tencent, one of China’s largest Internet service portals, has won an "unfair competition" lawsuit against Qihoo 360, a security software maker. The court fined Qihoo 5 million yuan. But experts say this case opens the gate for more to come.
The dispute has come to a close... at least for now.
Tencent surprised the public in February 2010, when the company openly asked users of its QQ instant messaging service to use the company’s own anti-virus program. Months later, it asked users to uninstall the Qihoo 360 safeguard, saying the two programs weren’t compatible.
Qihoo responded with open accusations against Tencent, leading Tencent to file an "unfair competition" lawsuit against Qihoo in 2011.
Both companies are trying to woo a growing number of internet users by offering free products. But what has gained wider attention is another aspect of the lawsuit.
Qihoo responded to Tencent’s lawsuit by filing one of its own, accusing Tencent of market monopoly, and opening the gate for the first internet antitrust case in China.
The anti monopoly ruling wasn’t included in today’s ruling, but some say the case will not stand.
"First of all, Tencent does not charge for its QQ service. Second, though it forced consumers to pick sides, it did not cause substantial harm to Qihoo 360. Third, Tencent did not cause substantial harm to consumers, either,"said Li Yongjian, associate research fellow from National Academy Of Economic Strategy, CASS.
Li says that though legally in the right, Tencent should not have forced users to pick sides. He expects more legislation in the future.
"First it must be beneficial to innovation, which is the base for the Internet sector. Then it should benefit consumers. Lastly, it should have a positive impact on the business environment. We cannot have a company so big that others cannot enter the market," Li Yongjian said.
Analysts say the internet industry is still an open market, at least from a business perspective. Future laws should strive to allow for fair competition to prevail.