Battle in the name of privacy and security: A comment on Tencent vs. Qihoo (Supreme People's Court of China 2014)

One strategy for companies competing in Internet industries is to attack the privacy and security problems of products or services provided by a competitor and then to deliver remedial software to attract consumers. The recent ruling of the Supreme People's Court of China (SPC) establishes legal constraints on this strategy, recognising that a company owes a high duty of care when criticising the privacy and security policies of its competitors and identifying the line between legal technological innovation and unfair interference with the business of competitors. This article provides a summary of the background, facts and court conclusions as well as relevant comments on the impact of this judgement and identifies the issues that require further clarification.