In April 2016, iQIYI filed a lawsuit with the Haidian Court against LeTV and ifacetv browser, both owned by LeTV Company, for the alleged unfair competition acts of “blocking” or “fast-forwarding” advertisements featuring iQIYI content. On December 14^th, the Beijing People’s Court of Haidian District issued a first instance ruling for the two cases, both of which were resolved in favor of iQIYI. The court held that since it is legal for video websites to offer users a business model of “advertisement + free video” streaming services, LeTV Company had compromised an operational model of great importance to iQIYI and had thereby damaged iQIYI’s interests. “These acts have violated generally accepted business ethics and the principle of integrity, thereby constituting unfair competition.” The court ordered LeTV Company to stop its unfair acts of blocking and fast-forwarding iQIYI advertisements, issue an apology for its acts of unfair competition on its official website for 24 hours and compensate the plaintiff, iQIYI, for its economic losses and reasonable expenses in the amount of 900,000 RMB.

Via Banhua