First Instance Court Verdict on 2Dfire Suing Meituan for Unfair Competition--2Dfire Lost 

Recently, the verdict of the case in which 2Dfire sued Meituan “little white box” was announced. Hangzhou Intermediate People’s Court rejected all the litigation requests of 2Dfire (Hangzhou Dihuo Technology Co., Ltd.), and the case admission fee of 246,800 Yuan was borne by 2Dfire.

The court held that shop operators have the freedom to choose how to receive payments in running their business, “Dihuo company (2Dfire) cannot have the right to monopolize users’ payment method or require all transaction flow go through its own product only because it has provided a cash register or a cash register application.” 2Dfire claimed in the lawsuit that Meituan “little white box” “illegally intruded” its 2Dfire smart cash register system, and “hijacked” the system’s and the shop operators’ third-party payment flow, which constituted unfair competition. 2Dfire believes that once the shop operators choose 2Dfire smart system, their customers should pay through 2Dfire. 2Dfire can therefore draw a commission of 3.5 thousandths of the payment from the financial payment channel.

In this regard, the court confirmed that 2Dfire software system was an open system with underlying technology of Android system, not only allowing Meituan “little white box” to be installed in it, but also other applications. “In this case, Sankuai company (Meituan) learned from public information about the naming rules of applications acceptable by 2Dfire, aligned ‘Meituan Receipt’ to the rules, and installed it in the Android system of 2Dfire.” 

The verdict stated that “little white box” and “Meituan Receipt” application did not actively force its link into 2Dfire cash register system. “It only provided options which users with corresponding needs can choose from."

It also stated that the request by 2Dfire in the lawsuit actually can be achieved by technical means which are cheaper and more efficient and do not occupy too much public resources.

August 7, 2019

Source: new.qq.com

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