The Haidian District People's Court in Beijing began hearing arguments in Chinese travel services site Qunar's defamation suit against rival Ctrip (Nasdaq: CTRP) this morning. Qunar is seeking a public apology and RMB 500,000 in damages from Ctrip.

Qunar claims to hold evidence showing that ever since it launched its group buy channel last year, Ctrip's public relations department has repeatedly sent documents to media around the country, such as "Dubious Hotel Group Buy: Group Buy Customers 'Second-Class Citizens,'" in which it fabricated customer complaint cases with the goal of smearing Qunar's group buy service.

Qunar claims that its new group buy model poses a threat to Ctrip, to which Ctrip responded by engaging in unfair competition and fabricating reports in order to defame Qunar.

Qunar and Ctrip both stated in court that they would not accept arbitration. Ctrip has not yet commented on the case.

Source:marbridgeconsulting