One of the biggest online video companies in China LeTV has filed a case against Chinese web service provider Baidu on grounds of illicit competition, accusing the latter for allegedly blocking all advertisements while LeTV is streaming online to users, a Beijing court revealed on Monday.

Like Us on Facebook

According to the Haidian District People's Court, LeTV has not been able to get online advertising revenue because its webpage, pre-roll and cut-in ads are illegally blocked when users stream LeTV online through the Baidu Video app. And because the ads are hindered, viewers only see the videos and instead of acknowledging LeTV, Baidu is seen as the source.

LeTV is suing Baidu to quit the unfair competition and demanding a 1 million yuan ($153,400) compensation.

The court has already accepted the lawsuit, but has not revealed the date of trial.

Leshi Internet Information and Technology (popularly known as LeTV) is a technology company based in Chaoyang District, Beijing. It was founded by Jia Yueting in November 2004.

The LeTV group is forming an online platform connecting devices, content and applications called "Le Ecosystem." Late in 2014, the company announced that it will engage in myriad businesses including Internet TV, smart gadgets and large screen applications, video production and distribution, Internet-linked electric cars, e-commerce and eco-agriculture, to name a few.

Under its Le brand, the firm has already rolled out four smartphones, namely, Le 1, Le 1 Pro, Le Max and Le 1S, which are all dual-SIM mobile devices. The company claims to be the pioneer of USB Type-C ports in the world.

TagsLeTV, Baidu, china, illicit competition