Zhou: Plagiarism + bundling brings far-reaching harm to Chinese Internet

April 16 Afternoon News, 360 company chairman Zhou 15th in the 14th session of the NPC anti-monopoly Law forum said that large companies copied the model of bundling, the Internet industry in China to bring far-reaching harm.

"Why can't China get out of Facebook?" It is because China's internet has formed a natural monopoly. "In Zhou View, Baidu monopoly of the Internet traffic, when Baidu itself do video business, it put its video traffic all provided to its company, odd art, potatoes, Youku will lose a lot of users."

"And Tencent controls all the users. Innovation is done by small companies, small companies do the same, Tencent will follow the product exactly the same copy. Zhou said that a few days ago NetEase denounced Tencent, and many game companies also issued micro-Bo denounced Tencent, Chinese internet companies in addition to Tencent, all the company's products are basically Tencent copied.

Zhou said: "The most frightening is that Tencent has hundreds of millions of users, it began to adopt a bundled approach, and particularly effective." CCTV affects 100 million users a week, and Tencent can affect 300 million users overnight. Many users even think Tencent is original. ”

In Zhou's view, plagiarism coupled with the pattern of the Chinese Internet damage is very far-reaching. "China's Internet, despite the formation of several leading companies, but because of monopolies, especially plagiarism and binding, so many Internet companies do not have the possibility of innovation, or even lose the impetus for innovation." ”

Microsoft, for example, used the same approach to Netscape, ie, and finally the Netscape browser. "I don't think it's important for a company to die, but it's important that the US and Europe have had a 10-year antitrust investigation of Microsoft." Since then, there has been a turning point, at least in the Internet, where no big companies like Microsoft have killed small companies by copying and bundling, ushering in the gold development of the US internet in the last 10 years. ”

"America's greatness doesn't care about a handful of highly-valued companies, Yahoo is strong and Microsoft is strong, but the U.S. will come out with a group of companies like Google and Facebook every 10 years." We encourage young people to innovate, but without basic protection in market competition, without the protection of forced bundling and the fight against innovation companies, we cannot have the real soft power of the United States. Zhou said at last.

The theme of the current NPC anti-monopoly Law forum is "knowledge innovation and Monopoly regulation: the normative development of Internet industry". Scholars from more than 10 universities, such as Renmin University of China, Peking University, Chinese Academy of Political Science, China, and other government departments, such as the NPC Standing Committee, the Supreme People's Court and the State Council's legal Office, have formed a panel of experts of this Summit forum and made related thematic reports. Elwyn)

The following is the full text of Zhou speech:

Thank you, experts, leaders. This is the first time I have spoken on such an occasion, and I cannot speak the height of Professor Shi.

I worked in the Internet field for 20 years, experienced a lot of ups and downs. I would like to combine the 360 of problems and puzzles in the Internet field and express our views on competition and monopoly, innovation and closure through a number of specific cases.

Let me briefly introduce 360. In 2006, we put forward the idea that, as the internet grows more rapidly, we believe that cyber security will become a more and more serious problem. Just like people in real life without security, it is impossible to have a good living environment. Now half the time is spent in the network, so that everyone in cyberspace feel safe and secure, I think this is the basic requirements and basic services. We believe that the mode of selling anti-virus software is obsolete, and network security services should become a basic service. Just as you can chat, email and search engines on the Internet, we pioneered a business model throughout the world in 2006, implementing a lifetime free antivirus and network security service.

After several years of development, the market has proved 360, we have become China's largest network security company. This business model has been recognized by the international mainstream capital. In April last year, 360 were listed in New York.

360 mainly carried out three aspects of innovation. Among them, the most important is the innovation of business model, from selling software to providing free service, gathering huge user base. On top of this user base, we developed our own secure browser. Microsoft's browser is a monopoly of the world, we are the world's first to break the monopoly of Microsoft. In today's China, our browser share has surpassed Microsoft, the world's browser has ranked fourth, this year can do the top three. The huge amount of traffic through the browser can bring positive revenue to the company and can support us to do a better job of the basic services of network security.

Second, we beat the domestic many do antivirus manufacturers, because we are in the product experience on a great innovation. We put security software from the past only experts can understand, experts can use products become today's non-professional users, that is, we say "small white" users, even my parents such people can easily use, through 360 to make their computers safer, faster access to the Internet.

People think 360 is always in the middle of a lot of right and wrong, there are many cases. In fact, I also want to explain. 360 to be safe, it seems like good to see the results today, but it's really a big challenge. Because there is a saying in China, what do not do to break people's way of doing things. 360 is precisely the broken many gray companies or the dark Company's business, such as killing Rogue software. In the 2006, Chinese Internet rogue software was rampant. In addition to NetEase company did not do, other Chinese internet companies, large and small hundreds of home do. People encountered many problems on the Internet, our law lags behind the development of technology, difficult to obtain evidence, leading to many companies with rogue software grab traffic, a year's income may reach a billion of, billions of. Our tools for killing rogue software are naturally offending quite a lot of companies. We have offended these people on the underworld, there are a lot of Trojan forums on the Internet. There are about hundreds of thousands of Trojan workers in China, they do not want to do Trojan horse to show their own spirit, they are no advantage not to get up early, he planted every trojan behind is for the benefit. Trojan is a very low explosion, because the cost of a Trojan horse is very high. The children who do the Trojans most hate is 360, as long as one has the slightest hint of trouble, will scold 360.

We not only offended the underworld, we also got Bai. Bai is antivirus software, just like selling medicine, they very much hope that people get sick, after the disease can eat their medicine. 360 free things than the charge is still good, a lot of anti-virus software listing dream broken, they hate 360. China's leading two internet companies, Baidu and Tencent, are also particularly hated by 360. Because 360 grow rapidly as fast as their user base is similar to the enterprise, the formation of user traffic and monopoly will bring them problems. Like Baidu rankings, who spend money can be ranked in the front. Google has been hit by them, who gives more money, you can put the search results in front. There are actually a lot of fraudulent websites that can spend money. Many small white users of the Internet also think that the search results are the most objective and impartial. We do network anti-fraud, is to search results of serious violations of national laws and regulations of the link and netizens complained more than the link mark out, so offended by such an industrial chain, it offended the search engine.

For the 3Q war, it is because of the user's support and recognition, we survived the 3Q war. The development of 360 in the past few years or from we would rather offend peers or companies, but also to achieve the supremacy of user interests, so we can develop to today. China has nearly 500 million netizens, if according to antivirus company's idea everyone buys an anti-virus software, everyone should spend hundreds of dollars every year. We have free anti-virus, so that Chinese netizens save a lot of money. From another point of view, the annual fraud, Trojan, pilfer number of such industrial chain is also billions of, the tens of billions of market, but also let netizens save a lot of losses. Over the past few years, we have through the innovation of free anti-virus, but also for users to reduce a lot of losses. What's your favorite company in 360? is an E-commerce company. If everyone on the internet to lose money, netizens will be on it? Favorite 360 of the game company. Only by creating a safe network environment, the Internet industry has a good development.

I say several numbers, such as our daily killing of malicious virus 60 million times, intercept the horse site 34 million times, every day to intercept the fraudulent site 27 million times. We are not only the largest Internet security company in China, but also the world's leading. I think this is also 360 contribution to the industry.

Why is 3Q war in 2010 years? We are very puzzled that the development of China's Internet today benefits from its demographic dividend. Because we have more people, more and more users use the Internet, with the number of users we are the world's largest market. We notice that no, ten years ago to find the internet hero, or MA, Robin Li, Jack Yun, the group of people, when everyone more than 30 years old. After ten years, the United States has changed a group of people. If we follow the Chinese Internet model and do it again, in another 10 years, we are the ones who should have retired from the stage of history by the age of 50. Why can't China get out of Facebook? It is because China's internet has formed a natural monopoly. Baidu has a monopoly on traffic. When Baidu does its own video business, it gives its video traffic all to its company, singular, potatoes, Youku will lose a lot of users. Tencent controls all users.

My understanding of antitrust is very superficial, I am instinctively speaking. Through the market, Tencent's products have done very well, we also very much recognized. Through its products, free chat done well, accumulated hundreds of millions of users, this is the choice of the market, can not say that people's market share is big, they call a monopoly. The most important thing is that when it has such a large market share, its three strategies have caused a lot of trouble to the industry and 360.

The first is the so-called plagiarism and imitation. Big companies have no incentive to innovate. We want to talk about innovation, Chinese people talk about innovation, actually we are the least innovative countries. Because innovation means small and minority, we are the culture of conformity. Innovation means a culture of failure, and our culture is a princely loser. Innovation is done by small companies, small companies do the same, Tencent will follow the product exactly the same copy. Whether it is a few days ago NetEase denounced Tencent, or a lot of game companies in micro-blog message, the Chinese Internet in addition to Tencent, all the company's products, basically Tencent have copied. Since 08, Tencent felt that 360 of the product is good, began to copy 360, the user is not clear.

Further said, plagiarism is not afraid, because others copy me, but I can always innovate. I've been advocating micro-innovation. As a product manager, I work more than 10 hours a day, and I think of ways to innovate new features every day. And finally found me like a bear with bears, I have a little idea. Tencent will squeeze and learn. The most frightening is that Tencent has hundreds of millions of users, and its bundled approach is particularly effective. Because it copied, I was the market's first, there would have been a leading edge. CCTV affects 100 million users a week, and Tencent can affect 300 million users overnight. Many users even think Tencent is original. The simplest example, we used to use happy net of stealing vegetables. Although the Chinese Internet has formed several leading companies, because of monopoly, especially plagiarism and bundling, I feel that many internet companies do not have the possibility of innovation, or even lose the impetus of innovation. China's internet includes many small start-ups and is not innovative, and everyone copies the United States. Because the cost of innovation is too high. And our spirit in the past few years under the encircle of Tencent can survive.

This kind of copy grin and this kind of binding, to the Chinese Internet damage is very far-reaching. Microsoft used the same approach to Netscape, ie. Finally, kill Cinic. I don't think it's important for a company to die. It is important that the US and Europe have had a 10-year antitrust investigation of Microsoft. Since then, there has been a turning point, at least in the Internet, where no big companies like Microsoft have killed small companies by copying and bundling, ushering in the gold development of the US internet in the last 10 years. Including today, Facebook has the power to copy a lot of small companies, but they would rather take the form of acquisitions and investments. Over the past decade, China's internet is still a jungle culture, or the jungle, whose fists hard, who have more users, and finally who can win.

3Q When the war happened, I was also very blind, I did not speak too much. The cause of the 3Q war is precisely because of the continuous plagiarism plus binding, finally forced 360 no way to go. Because Tencent as an entertainment company, its security function does not compare with 360. Today its market share does not get the number of dreams. But at the beginning I copied it just like you, a cottage product, looks exactly the same, and through the binding, we really feel very uncomfortable.

At that time we thought of a method, some people said I want to disrupt the operation of Tencent, it is impossible. Because from the user experience I do not like this company, as long as users like its products, we must respect the user's right to know and publicity, but also the basic premise of the elimination of law. At that time I think there is no way to do a function it can not copy, I racked my brains to think, I made the first product called Privacy Protector. Because Tencent has targeted ads for a lot of users, you've actually installed its software, and it knows what you do every day. There is no strict definition of privacy in our country's laws. So we do privacy protection, in the legal lost. I was wondering if we could restrain it from copying this feature. When we do kill Rogue software, also lost. The common people all think this software is not good, by 360 when killing, we call it rogue software. Later, we called the software evaluation software to avoid a lot of lawsuits.

Later we made a product called buckle buckle bodyguard, it is not the destruction of Tencent software running, but let the software run when garbage less, faster, no ads. No advertising is sure to hurt Tencent's commercial interests. But in turn, the user chose to use this tool, just as I watched TV in my own home, I could not deprive the TV station of the right to advertise, but I have at least a remote control device can change the channel. But you originally installed QQ software, it must force you to look at its advertisement, you have no choice, also hide not open. I give users a choice, do not use the function of QQ, you can turn it off. I don't want to install a chat software that makes my computer bloated. We have made such a product, the user is very welcome, and it does let the user's QQ experience improve. Tencent in this case that I hurt its commercial interests. Because we have no way, I think QQ will not copy my function. Tencent in this case, it believes that it has formed a monopoly on the market, it is very confident to force users to do two choose one, or Tencent, or 360. I think this is a good example.

In the past we talked about antitrust, and the Chinese public often didn't care about antitrust. Monopoly is not a monopoly is the problem of enterprises, enterprises in order to compete with each other to find the header, and consumers have no relationship. But through the 3Q war, the unspoken rules of the internet exposed, let the public for the first time to realize that the original enterprise monopoly to a certain extent can directly command me in My computer with what software to be decided by them. That is why the public has made a lot of criticism on the internet, and it has created a great deal of pressure on Tencent. This is a very good case, whether it is government authorities, experts in the legal profession, friends in the media community, and a lot of the public, as well as many business companies, we really realize that if a company forms a factual monopoly and abuses the rules of the market, it will ultimately hurt not only the companies that are practising, The user finally has no choice.

We have two lawsuits recently, one is Tencent continue to sue our buckle bodyguard. Our bodyguards must have a lot of do not rigorous place, but we never damage the interests of users, and did not disrupt the operation of QQ. The second is that we sue Tencent's antitrust. Because I think it's important. 360 because of their product innovation ability also let us not be killed by Tencent, I can also stand here to speak, we can also go to New York listing. I am also an angel investor, I see many investment companies face the first problem is that you do a product, if Tencent plagiarism how to do? If Tencent plagiarism, the last bundle how to do.

The first two days an American company bought a game called "You draw I guess" and was copied by Tencent. I think in the end, China's internet sector is a few giants, they have the entire Internet's demographic dividend and the value of the Internet into the company's market capitalisation. We can be proud to say that we have hundreds of millions of, 50 billion of companies that can be ranked the top of the world, but the real impetus these companies give to industry is to make more money from monopolies, and not to compare Google and Facebook to real technological innovation and industrial model innovation. Nor does it bring great impetus to the Internet, but to bring value to itself by destroying other companies.

I think the Internet is subverting many industries and subverting many industries. We are always feeling the strength of America. America's strength does not care about the number of highly valued companies, Yahoo is strong, Microsoft is strong, but the United States every 10 years will come out a group of companies like Google, Facebook. We encourage young people to innovate, but without basic protection in market competition, without the protection of forced bundling and the fight against innovation companies, we cannot have the real soft power of the United States.