Chinadotcom has terminated a partnership with CMC Magnetics and is suing the Taiwan company, alleging it neglected contractual responsibilites and breached the contract by setting up a competing Web site.
CMC was commisioned last May to operate and develop Chinadotcom's Taiwan focused portal, taiwan.com.
But against the terms in the contract, CMC set up its own Web site - taiwanet.com - and focused its energies on developing 'competitive content', according to Chinadotcom.
'Under the contract, they were to provide management and operational services to taiwan.com and develop content for the portal,' spokesman Susan Chan said.
'But they did not perform their duties properly and started developing competitive sevices through [their own portal] taiwanet.com.' Chinadotcom promptly terminated the contract and is suing CMC for repayment of US$2 million in loans.
Ms Chan said the company may also seek other breach-of-contract remedies against CMC.