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Thursday, December 21, 2006
Yahoo! China Wins Unfair Competition Lawsuit

A Beijing court has found the operator of a Chinese Internet portal guilty of unfair competition by portraying the Yahoo! toolbar as a security risk to be removed, Yahoo! China has said.

Yahoo! China had sued the operators of the website over the use of software that prompted users to de-install the Yahoo! toolbar from their browsers, suggesting that it posed a risk, Yahoo! China said in an emailed statement.

The toolbar offers a search engine and allows users to block viruses and pop-up ads.

Yahoo! China said this led to media reports that tarnished the company's reputation.

The court ruled on Wednesday that Qihoo's operator, Beijing Sanjiwuxian Internet Technology Co Ltd, engaged in "unfair competition" and ordered it to immediately cease the activity.

The Chinese company was also ordered to compensate Yahoo! China for damages and legal costs, and publicly clarify incorrect allegations about the toolbar, Yahoo! China said.

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