A dating website for married people seeking affairs is suing the government of South Korea after being blocked in that country over what it says are false allegations of illegal activity.
Ashley Madison filed the suit in federal court Wednesday through its Canadian parent company, Avid Life Media.
In its statement of claim, the company accuses the South Korean government of engaging in "uncompetitive acts" by unfairly banning the website while allowing local businesses to operate similar ones.
It alleges the effects of that decision trickle down to Canada, limiting Ashley Madison's success among Korean-Canadians and other Asian-Canadians and reducing overall competition in the social media market.
The Toronto-based company is seeking an unspecified amount for loss of revenue and lost profits, as well as general damages for uncompetitive conduct.
It also wants the court to order South Korea to stop blocking the website, described in the document as "a social networking website facilitating communication between like-minded adults."
None of the claims have been proven in court and Korean authorities have yet to file a statement of defence.
Ashley Madison, which uses the slogan "Life is short. Have an affair," launched its website in South Korea on April 1, the claim says. The site has already expanded to more than 30 countries, it says.
In just over two weeks, the new site drew nearly 50,500 members, the document says.
Soon after, the government-run Korea Communications Standards Commission — which is also targeted by the suit — blocked the site, alleging that it "contained illegal information," it reads.
The company says it was never told what the commission's concerns were, and that its appeal of the decision was dismissed within days "without further explanation."
Ashley Madison denies the accusations, saying the website "neither contains illegal information, nor does it aid or abet any illegal activity."
"The website is for communication purposes only, and such communication is neither illegal in South Korea nor Canada," the company argues in the document.
"No sexual interaction can take place on the plaintiff's website any more than it can by individuals using other websites that the defendants permit to operate freely in the Republic of Korea."
The suit alleges South Korea is trying to give its own companies a leg up when it comes to breaking into the Canadian market.
"The defendants' anti-competitive practices in South Korea have a direct impact in Canada on communications and social networking businesses and websites competing for the Korean-Canadian and Asian-Canadian market for such websites," it claims.
"Given the global reach of the Internet, a social networking service that meets with success among any particular group of people in one country has or will have a significant competitive advantage among people of that same group or related groups in other countries."
Ashley Madison says it will lay out its financial losses during trial, which it suggests be held in Vancouver.
