Yahoo China wins unfair competition lawsuit

SHANGHAI, Dec 21: Yahoo China has won a lawsuit it brought against a local search engine operator over unfair competition, Yahoo China's owner, Alibaba.com, said today.

Beijing's Second Intermediate Court ruled that Beijing Sanjiwuxian Internet Technology, operator of the Qihoo search engine, must stop competing unfairly and compensate Yahoo! China for damages and legal costs, Alibaba said in a statement.

Beijing Sanjiwuxian was also required to make a public announcement clarifying ''incorrect allegations'', the statement said, without specifying the size of any possible damages.

Yahoo China's suit had claimed that Qihoo's 360safe software prompted users to de-install the Yahoo Toolbar by making users believe the toolbar was malware -- software that users download unknowingly and is difficult to remove.

A spokesman for Beijing Sanjiwuxian Internet Technology was not immediately available for comment.

US-based Yahoo Inc. last year took a 40 per cent stake in Alibaba, folding its own China business into Alibaba and making a 1 billion dollar payment in exchange.

REUTERS