Web giants supreme court battle

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PKG

Two of China's biggest internet giants have begun their legal battle at the country's Supreme People's Court.

The web companies, Qihoo 360 and Tencent, have been involved in a feud over monopolies and unfair practice.

The case is China's first anti-monopoly lawsuit in the online market since China's anti-monopoly law took effect in 2008.

Experts believe the final verdict could set a future benchmark for other anti-monopoly cases.

PKG

Tuesday's proceedings included investigation results, debate and mediation, with no ruling handed down.

Wang Chuang, chief judge at the trial, says the court has to clarify several major facts and settle a dozen disputes arising from the case.

The two companies began a drawn-out legal war in 2010, when Qihoo 360 accused Tencent of invading the privacy of its users through the use of a security program developed by Tencent via its popular QQ instant messaging service.

The antivirus company claimed that Tencent had used the software to scan and monitor its users' personal information.

Following the complaint, Qihoo 360 released its own security software in October 2010, claiming it could offer more privacy to its users.

The dispute escalated when Tencent later said it would shut down its instant messaging service on those computers where Qihoo 360 had installed its privacy guard.

Hundreds of millions of Chinese netizens were forced to choose between Tencent and Qihoo 360's product.

Just five months later, Qihoo 360 claimed Tencent abused its "dominant market position", claiming 150 million yuan, or nearly 24 million dollars as compensation.

But the Guangdong Higher People's Court rejected Qihoo's suit, and the company then appealed to the Supreme People's Court.

Wang said the court has to define what the "Internet marketplace" is in this case and whether Tencent has a monopoly within it.

The court will also decide whether Tencent has violated the anti-monopoly law and how civil compensation will be delivered.

Legal experts expect the trial to set a benchmark for future anti-monopoly lawsuits - which have been rare since the anti-monopoly law took effect in 2008.

Meanwhile, many also suggest the rights of internet users' should be taken into consideration when deciding whether the competition between the two companies was fair.