Reuters reports that Yahoo China is suing Qihoo, claiming that 360safe spyware software is prompting users to uninstall the Yahoo Toolbar. The spyware software claims that Yahoo's Toolbar is "malware" and is a risk to their computers. Joseph Tsai, Alibaba's chief financial officer, said that this is unfair competition, alluding to a former Yahoo employee named Zhou Hongyi who now heads up Qihoo. It is important to note that Zhou Hongyi sued Yahoo last month for defamation.
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