Yahoo and eBay face China malware suits

Yahoo is facing allegations in China of distributing malware

Yahoo is being sued in a Chinese court for distributing malware. 

The newly-formed China Anti-Malware Alliance announced that it filed suit against the internet giant in a Beijing court on Monday.

The Alliance is also preparing to sue eBay China later this month, representatives told local media recently.

Members plan to file suit against a new website every week from the first 20 firms on a blacklist of 130 alleged malware-distributing websites, according to statements released by the Alliance.

A Yahoo China spokesman admitted to reporters that the firm had installed its Yahoo Assistant software without properly asking for users' permission, but had ceased this practice a year ago.

Yahoo China's legal affairs department plans to fight the case, the spokesman said, according to a report in the China Daily. 

The Anti-Malware Alliance is a voluntary organisation, members of which include a number of lawyers who are contributing their services free of charge.

The organisation is demanding that the accused companies stop distributing malware, make a public apology and pay a symbolic $11 in damages. The suits have been filed under laws pertaining to property protection and consumer rights.

The word 'malware', which includes spyware, Trojans and viruses, is translated into Chinese with a phrase that literally means 'gangster software' or 'hoodlum software'.

Yahoo China was recently sued for defamation by former executive Zhou Hongyi, who once oversaw the portal's anti-malware products. Zhou also accused the firm of distributing malware in China.

Although there is no apparent connection between Zhou and the Anti-Malware Alliance, the structure and funding of the alliance are unclear.

Two sparsely populated websites, 94xyz.com and 94xyz.net, represent the organisation's online presence and host a discussion forum with approximately 400 members.

The websites were registered at the end of August by 28 year-old Dong Haiping, who is apparently the same person quoted in the group's press releases as its "leader". Dong refused to tell journalists where he is employed.

The stated aims of the organisation include taking legal action against malware distributors, providing a public forum for identification of malware threats, and providing free downloads of anti-malware software.

The Anti-Malware Alliance filed suit against local search engine Zhongsou.com last week, and has also announced that it will sue news site Dayoo.com. 

Other firms on its malware blacklist that may be sued later include China's leading search engine, Baidu.com, but not world leader and China number three, Google, according to media statements. 

In related news, Yahoo China's chief executive told the China Daily this week that the company has doubled its staff from 400 to 800 over the past year, despite losses when former general manager Zhou left the firm.

Yahoo's parent company in China, Alibaba.com, had not replied to a request for comment from by the end of office hours in Beijing today.