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Yahoo! Accused Of Violating China's Unfair Trade Practice Laws

by Mary Swire, for LawAndTax-News.com, Hong Kong

26 April 2004

Yahoo! China has been accused by a rival firm of breaking Chinese laws on unfair trade practices, and of violating regulations prohibiting unauthorised access to computer information systems, it emerged last week.

According to a South China Morning Post report, e-commerce portal, Alibaba.com accused Yahoo! (which has just joined forces with mainland portal, Sina.com to offer peer-to-peer auction services) of raiding its online auction unit, Taobao.com for the contact details of more than 50,000 clients.

The alleged harvesting of sensitive information was discovered following complaints by Taobao users that they were experiencing problems accessing the firm's web pages at the same time each day. The company investigated, and found that the glitches were being caused by heavy demands placed on its servers by a single user, which it alleged was a website registered to Yahoo!

In a letter to the portal, Taobao has reportedly called for the 121 gigabytes of data to be destroyed.

"We welcome competition but we do not wish to see malicious competition through unfair collection of competitive information," it announced.

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