04.20.2011 16:45
What's behind Qihoo 360's squabbles with rivals in the past year?
Q: What' behind Qihoo 360' squabbles with rivals in the past
year?
A: Qihoo 360 Technology Co.'s highly-anticipated IPO on the
New York Stock Exchange in March totaled US$ 176 million. Shares in the leading
anti-virus software company more than doubled to US$ 34 soon after the public
debut. But beyond the market buzz, Qihoo has also come under a harsh light after
major competitors accused the company of unethical business practices last
fall.
Qihoo vs. Tencent: What started out as a series of lawsuits
escalated into a public mudslinging contest when Qihoo and China's largest
internet company, Tencent Holdings Ltd., began accusing each other of spying,
hacking and leaking users' private information, as well as deliberately
releasing malware. Tencent operates the popular instant-messaging platform QQ,
which has over a billion users.
Tencent announced in November 2010 that because Qihoo's antivirus software
was destroying QQ's ability to protect user information, the company was
shutting down QQ on any computers with Qihoo software installed, forcing users
to choose between the two companies. According to Tencent, about 15 million
users removed Qihoo software as a result.
The spat prompted a legal investigation by the Chinese Ministry of Industry
and Information Technology and the Ministry of Public Security, which in late
November publicly rebuked the two companies and forced them to settle any
remaining issues.
Qihoo vs. Kingsoft: With the QQ-Qihoo rivalry putting a dent
in Qihoo's popularity, other anti-virus software companies have begun to seek a
stronger market position. In December 2010, anti-virus software rival Kingsoft
accused Qihoo 360 of collecting and leaking users' private information; Qihoo
responded with a countersuit.
Kingsoft also has another lawsuit pending against Qihoo, alleging that Qihoo
software is blocking the installation of Kingsoft programs under the guise of
"software incompatibility."
Qihoo vs. Baidu: Also in December 2010, China's top search
engine company Baidu won an unfair competition suit against Qihoo, after proving
that Qihoo's software had classified some of Baidu's products as malware, and
that Qihoo had encouraged users to uninstall Baidu applications.