Core Viewpoint - The report by Huorong highlights the presence of "rogue software" in the domestic PC ecosystem, particularly focusing on the well-known software Lu Da Shi, which is accused of deceptive advertising practices and traffic hijacking [2][3][10]. Group 1: Allegations Against Lu Da Shi - The report identifies Lu Da Shi as engaging in misleading practices, such as setting fake close buttons to trick users into downloading third-party software [2][4]. - Lu Da Shi is also accused of inserting rebate parameters into links on platforms like JD.com and Baidu, allowing the software to earn commissions without user consent [5][9]. - The software's operations are said to be controlled by a cloud-based configuration system, which allows for real-time adjustments to promotional strategies based on user behavior [5][6]. Group 2: Industry Context and Impact - The report indicates that Lu Da Shi, once a leading system evaluation software with a market share of nearly 99%, has seen a decline in user engagement and revenue due to changing market dynamics and regulatory challenges [10][11]. - The company's revenue heavily relies on online traffic monetization, with 99.9% of its income coming from this source, particularly from advertising, which has surged by 153% despite a general downturn in the advertising industry [11]. - The report suggests that the software's reliance on gray income models is a response to the challenges of finding stable monetization avenues in a competitive market [10][11]. Group 3: Regulatory and Legal Challenges - The report discusses the historical context of "rogue software" in China, noting previous attempts to combat it through collective lawsuits and the formation of advocacy groups, which have had limited success [12][13]. - Legal experts highlight the difficulties in defining and prosecuting "rogue software," as it often operates in a gray area between legitimate software and malware, complicating enforcement efforts [12][14]. - Recent regulations have begun to clarify the boundaries of acceptable advertising practices, but enforcement remains challenging due to the technical sophistication of these software programs [13][14].