MIIT Lays Down the Law for Qihoo 360 and Tencent
DoNews, 11/21/10
China's Ministry of Industry and Information Technology (MIIT) has issued a formal criticism of online security software developer Qihoo 360 and internet portal, SNS, IMS and gaming platform Tencent (0700.HK) for unfair competitive practices related to recent disputes between the two companies, including refusal of service to customers who wish to use both companies' products. The criticism details the following requirements and notifications:
1. Both companies must issue public apologies within 5 working days, and grant appropriate reparations to customers.
2. Both companies must cease attacking each other, and guarantee the mutual compatibility and normal operation of their products.
3. The MIIT and other relevant authorities will be engaging in further investigations of suspected illegal actions carried out by both companies.
4. Both companies are urged to take a lesson from this incident, and earnestly pursue a deeper understanding of the law as related to their business operations.
5. Other internet and information service providers should also consider themselves warned, and work to obey relevant laws and maintain the stability of the market.
Editor's Note: Both companies have already issued statements expressing their acceptance of the MIIT criticisms, and reiterated their apologies to the public. For more background on this topic, please see "MIIT Orders Tencent, Qihoo 360 Ceasefire" MD 11/11/10 issue.
Keywords: scandal regulation penalty Internet software Tencent MIIT 0700.HK Qihoo 360
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