A Chinese company, NetQin, allegedly secretly installed malware whenever users installed a copy of their special “cellular malware detector” and then charged a 30 cent update fee to remove the virus. The software also deleted other anti-virus solutions on Android phones.

NetQin has denied the accusation and chalks up the nasty talk to an upset competitor.

All major Chinese carriers have blocked NetQin from selling their app on their app stores and they can no longer charge users ransom. The company recently filed for an IPO on the NYSE.

UPDATE – Here is NetQin’s response:

NetQin Mobile Inc. has strong ethical standards and abides by all applicable industry rules and regulations. The allegations waged against us are entirely false.

NetQin stands behind the quality of all its products and we are diligent in our work to ensure that all NetQin mobile apps are safe and secure. In fact, we welcome any independent 3rd party to evaluate and audit our products, as we are confident they will be found to be safe, secure and of high quality.

via Cellular News