(Yicai) Aug. 28 -- A Douyin account owner has lost China's largest CNY5 million (USD685,926) lawsuit regarding defamation online and automakers in recent years despite an appeal as the court did not change its mind about the malicious short-video content of a joint venture of Nissan in China.

The Wuhan Intermediate People’s Court ruled that Dongfeng Nissan Passenger Vehicle, a JV of Dongfeng Motor and the Japanese car company, won the lawsuit against Beijing-based Cheqianli Interactive Technology, legal database China Judgments Online announced recently. Cheqianli will need to compensate the carmaker for its economic loss of CNY5 million, plus all the relevant expenses.

A partner of a law firm told Yicai that the particularly high CNY5 million penalty can be seen as a warning for influencers who are willing to cross the line to gain online traffic.

The short-video publisher had tried to appeal the original verdict, given in December, when Cheqianli was ordered to delete the content. The crime took place from August to November 2021 when Cheqianli posted over 50 videos on the Chinese version of Tiktok to get public attention to gain sales opportunities while denigrating products made by Dongfeng Nissan, per the ruling. It prevented the car firm from earning business opportunities, caused operational losses, and infringed on its goodwill.

The case is the largest in the past couple of years but not the only one. Last year, Tesla sued a blogger in Zhejiang province, demanding CNY5 million in compensation for defamation. The content creator was ordered to pay hundreds of thousands of yuan to the American electric vehicle maker.

Before that, several other car companies such as BYD, Great Wall Motor, and Changan Automobile have sued influencers for reputational damages, asking from CNY1 million to CNY5 million in compensation. Shenzhen-based BYD even set up a platform, offering incentives for reports on false rumors.

Editor: Emmi Laine