Tencent v. Qihoo 360 Unfair Competition Case

In 2010, Qihoo 360 launched a "Privacy Protector" and "Button Bodyguard" software, accusing Tencent's QQ of scanning user private files. Tencent sued Qihoo 360 for unfair competition and demanded users choose between QQ and 360 software. The case was filed in Guangdong Higher People's Court, seeking 125 million yuan in damages. In 2013, the court ruled that Qihoo 360 had engaged in unfair competition, ordering 5 million yuan in compensation and a public apology. Qihoo 360 appealed, but in 2014, the Supreme People's Court upheld the original verdict, affirming the acts constituted commercial defamation and unfair interference.

Qihoo 360 was found liable for unfair competition, ordered to pay 5 million yuan in damages, and required to publicly eliminate the negative impact caused to Tencent. The Supreme People's Court upheld the ruling on appeal.

Whether Qihoo 360's privacy accusations and protective tools constituted commercial defamation and unfair competition by improperly interfering with Tencent's QQ operations and damaging its business reputation.

The case established critical legal boundaries for internet competition, curbed malicious competitive practices, and promoted healthier industry development. It also heightened public awareness of online privacy and anti-monopoly concerns, becoming a reference for subsequent internet regulation and legislation in China.