Chinese video-sharing platform Kuaishou is suing its domestic archrival Douyin, also known as TikTok overseas, for “interfering” with search results on a third-party app store. The move is the latest sign of the fierce competition between the two players in the booming short video market.

In the lawsuit, which has been accepted by Beijing’s Haidian District People’s Court, Kuaishou claims that searches for the keyword “Kuaishou” on the app store, 360 Mobile Assistant, leads users to a paid advertisement on Douyin, according to a court statement released Tuesday.

Users can directly download the Douyin app after clicking on the advertisement, an act that constitutes infringement of Kuaishou’s trademark rights, the plaintiff alleges. Labeling such practice as “unfair competition,” Kuaishou is demanding compensation of 5 million yuan ($705,000), the court said.

The case is now under investigation, the statement said.

Tencent-backed Kuaishou is China’s second-largest short video platform after ByteDance-owned Douyin, which has recently amassed more than 2 billion downloads on Apple’s App Store and Google Play Store combined.

In February, Kuaishou claimed that it had more than 300 million daily active users, a milestone the app achieved after securing the exclusive right to distribute 1 billion yuan worth of cash in digital red envelopes during China Central Television’s 2020 Spring Festival Gala in January. Red envelopes are traditionally given during the Spring Festival with the digital form being their latest manifestation.

Douyin had over 400 million daily active users as of early January.

The case between Kuaishou and Douyin is the latest in a flurry of unfair-competition lawsuits against ByteDance. In December, Baidu sued ByteDance’s news aggregation app Jinri Toutiao for deliberately nudging users searching for Baidu-affiliated content to different results produced by ByteDance’s subsidiaries.

Contact reporter Ding Yi (yiding@caixin.com)

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