China firm takes Baidu to court on monopoly claim

By Kirby Chien

BEIJING, April 23 (Reuters) - Baidu.com Inc (BIDU.O) has been accused of abusing its dominant market position to punish a client company, which is seeking 1.1 million yuan ($161,000) in damages, according to a Beijing court.

The Beijing No. 1 Intermediate People's Court said on its website that a verdict was pending.

Renren Information Service Co said China's top Internet search engine had violated the anti-monopoly law when it restricted search access to a subsidiary's website as punishment for reducing advertising spending with Baidu, the court said.

Nasdaq-listed Baidu denied the charges, said the court. Baidu officials were not immediately available for comment.

Baidu was forced late last year to remove questionable paid search listings from customers that did not have proper licenses, after state television reported Baidu had sold links to unlicensed medical sites with unproven claims for their products.

Baidu also has open court cases brought by Sony Music (6758.T)(SNE.N), Warner Music (WMG.N) and Universal Music (VIV.PA), accusing it of directing users to unauthorised music download websites.

Renren said that after reducing its advertising with Baidu, the search engine quickly moved to reduce access to Renren's website, the court said.

Officials from Renren were not available to comment.