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Yahoo China Wins Unfair Competition Lawsuit

By portraying the Internet giant's tool bar as a security risk, went too far, a Beijing court has ruled

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, an AFP report said.

The AFP report, quoting Yahoo China, said the company had sued the operators of the Web site over the use of software that prompted users to de-install the Yahoo! toolbar from their browsers, suggesting that it posed a risk.

The toolbar offers a search engine and allows users to block viruses and pop-up ads, the AFP report said.

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

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

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

Provided by Telecom Asia—Copyright: © 2006 Questex Media Group, Inc. > All right reserved.

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