The first case of applying anti unfair competition law in China

Chongqing, August 21 (reporter Zhong Yi) the reporter learned from the fifth intermediate people’s Court of Chongqing on the 21st that one of China’s largest Internet integrated service providers, the company sued the defendant for providing false brush volume services, which constituted unfair competition. The case was publicly adjudicated a few days ago, which was the first case in China to apply Article 12 of the Internet special article of the anti unfair competition law. < / P > < p > on December 25, 2017, Tan started to operate “Penguin agent business network” to provide customers with false consumption service, and then set up a number of related sub websites, all of which are engaged in paid volume and single payment business. In July 2019, Tan set up a digital push network company with sole proprietorship, specializing in paid volume and bill brushing business, until the above website was closed after being sued in November 2019. During the period, the company and Tan’s website, with other network marketing platforms, targeted at products or services provided by Tencent Inc’s website, including “Daily Express”, “Tencent video”, “Tencent micro”, “QQ space”, “QQ name card”, “WeChat” and “WeChat official account”, or other operators’ websites’ products or services, and to enhance content information by false. For the purpose of quantity, liking, browsing, reading and fans, the company provides paid sales to customers and provides false service. Tencent believes that the false consumption of its services and products disturbed the market competition order and infringed on the legitimate rights and interests of consumers, so Tencent filed a lawsuit with Chongqing No.5 Central People’s court, demanding that the company and Tan immediately stop unfair competition, compensate them for their economic losses of RMB 5 million and reasonable expenses for rights protection, and publish a statement to eliminate the impact. During the trial, the defendant, shutui company and Mr. Tan argued that their behavior did not constitute unfair competition. Chongqing No.5 Central People’s court held that the defendant shutui company and Mr. Tan provided false service with compensation against the Internet products or services of Tencent company and the Internet products or services of other Internet operators, which violated the principle of good faith and business ethics, and damaged the legitimate rights and interests of Internet operators, users and consumers In accordance with Article 12 (4) of the Anti Unfair Competition Law of the people’s Republic of China, which states that “the operator shall not use technical means to influence the choice of users or other means to implement Other acts of hindering or damaging the normal operation of network products or services provided by other operators are unfair competition acts and should be regulated by the anti unfair competition law. At the same time, subjectively, the two defendants have the intention of joint implementation of unfair competition behavior. Objectively, the two defendants divide their labor and cooperate with each other, which constitutes joint infringement and should bear the liability for compensation. According to the judgment of Chongqing No.5 Central People’s court, the two defendants immediately stopped their unfair competition behavior, compensated Tencent for economic losses and reasonable expenses, totaling 1.2 million yuan, and published a statement to eliminate the impact.