Shanghai High People's Court has made a final judgment on Beijing Golden Holiday's lawsuit against Ctrip.com (CTRP). The court has ruled that Golden Holiday's claims are groundless and that Ctrip can continue to say it is "the first Chinese travel service provider listed in the US" and "a famous brand of China's travel industry".
Troubles began in September 2004 when local media reported that, in the beginning of 2004, Golden Holiday submitted a letter to various departments including the State Travel Bureau, General Bureau of Civil Aviation, China Travel Agency Association and State Administration of Industry and Commerce accusing Ctrip.com of illegal business practices.
Golden Holiday also accused Ctrip of being involved in providing an illegal travel and air ticket agent service. The claim was that Ctrip did not have the necessary qualifications to run a hotel booking, ticket and travel service, and was misguiding the public by claiming to be "the first travel establishment listed in the US," since it does not belong to the tourism industry.
Then in late January 2005, Shanghai No. 1 Secondary People's Court ruled that Golden Holiday's "false propaganda" lawsuit against Ctrip.com lacked sufficient evidence and the court dismissed the case. However Golden Holiday said they would appeal to the Shanghai Advanced People's Court.
In March 2005, Ctrip countered Golden Holiday's accusations with a lawsuit of its own, accusing Golden Holiday of spreading incorrect information about Ctrip and engaging in improper competition. Ctrip sought CNY5 million as compensation.