Qihoo Loses Unfair Competition Appeal Against Tencent

Qihoo 360 Technology Co. (QIHU) lost an appeal to China’s Supreme People’s Court against a ruling that it engaged in unfair competition against Tencent Holdings Ltd. (700), according to an official post on microblogging site Sina Weibo.

Qihoo made negative comments against the software and services of Tencent’s QQ instant messaging service, the court said. China’s top court is also considering a separate appeal by Qihoo against another ruling that it had failed to show that Tencent had market dominance in instant messaging that harmed competition.

The dispute between Tencent and Qihoo began in 2010, when Qihoo said Tencent invaded the privacy of users through an anti-virus program coupled with QQ, according to the official Xinhua News Agency. QQ had more than 816 million monthly active users by the end of September, Tencent said in its earnings filings in November.

Qihoo then offered its own security program and Tencent warned its users that this software could cause QQ to not operate properly, according to Xinhua.

To contact the reporter on this story: Lulu Yilun Chen in Hong Kong at ychen447@bloomberg.net

To contact the editor responsible for this story: Michael Tighe at mtighe4@bloomberg.net

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