(Yicai Global) July 26 -- Amid increasingly intense competition in China’s auto industry, Great Wall Motor and BYD are suing the suspected paid trolls behind several internet accounts that spread negative information about the two carmakers on social network platforms.

Great Wall has begun legal proceedings against six paid online accounts suspected of serious infringements, claiming compensation of between CNY2 million and CNY5 million (USD280,000 and USD700,000) from their operators, the Baoding-based firm said on Weibo yesterday.

Paid cyber trolls are hired to publish information online while pretending to be ordinary users or consumers in order to manipulate public opinion.

Great Wall offered a reward of CNY10 million (USD1.4 million) to combat cyber trolls in March and as of July 14 it had received nearly 1,000 reports that can be considered as evidence and has taken legal action against some of those who have maliciously smeared it, according to the firm.

BYD is also trying to fight the paid cyber trolls. Its legal department said on July 24 that a Weibo user who has long published false information slandering the firm has severely damaged its reputation. BYD will prosecute the person and require them to delete their comments, make a public apology, and pay compensation of CNY5 million, it noted.

Trolls for hire damage the entire auto industry, according to market insiders, as some firms are trying to put down their rivals by manipulating public opinion. The steps taken by Great Wall and BYD reflect the intensifying state of competition in China's auto sector, they said.

Great Wall handed documents to the authorities in April to report that multiple BYD models used atmospheric fuel tanks and their emissions of vaporized pollutants allegedly failed to meet China’s standards. Some of the account operators sued by Great Wall this time have also published content about the advantages of BYD’s products.

The industry convention issued by the China Association of Automobile Manufacturers in March pointed out that the auto industry needs to improve brand competitiveness, promote positive communications, and refrain from defaming, belittling, or discrediting the brand image in any way.

Editors: Shi Yi, Martin Kadiev