Analyzing Competition Among Internet Players: Qihoo 360 v. Tencent

Howard Chang, David Evans, Vanessa Yanhua Zhang, May 14, 2013

In one of the most significant antitrust decisions since China implemented the Anti-Monopoly Law (“AML”) in 2008, the Guangdong High People’s Court (“Guangdong High Court”) dismissed claims on anticompetitive bundling and exclusionary practice brought by Qihoo 360 against Tencent. The Guangdong High Court issued an 80-page decision that provided a relatively sophisticated and nuanced analysis of market definition and market power that examined internet-based competition, recognized the importance of multi-sided platforms in this competition, and highlighted the critical role of dynamic competition.

Although Qihoo 360 has appealed the decision to China’s Supreme Court it now stands as both a landmark decision in China and an exemplar of serious antitrust analysis of the internet sector for courts and competition authorities around the world.

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