Two of the China technology companies are taking the fight to each other as China sharpens its antitrust crackdown.
Fighting between the two China technology companies
The incident started as Douyin – the Chinese version of TikTok – sued Tencent on Tuesday. Douyin claimed that Tencent has abused its “market dominance” edge out competitors.
Beijing-based ByteDance owned Douyin. This Beijing-based China technology company filed a lawsuit alleging on Douyin. According to a public statement on Douyin’s WeChat account, Douyin alleging that Tencent’s WeChat and QQ messaging apps ban their users from sharing content from Douyin for three years.
Several state media outlets then reported that Douyin is asking Tencent to lift its content restrictions. Besides, Douyin is asking Tencent to pay 90 million yuan to them for its economic losses and fees.
“We believe that competition is better for consumers and promotes innovation,” a Douyin spokesperson said in a statement to CNN Business. “We have filed this lawsuit to protect our rights and those of our users.”
Tencent subsequently fired back, saying that it plans to sue ByteDance in its own statement on Wechat this Tuesday.
“The relevant allegations from ByteDance are purely false and malicious framing,” Tencent said. It accused Douyin of having “illegally obtained WeChat users’ information” and infringing on consumer rights.
Information about these two China technology companies
ByteDance and Tencent are two of the top player in Chinese social media. As of active users, Tencent’s WeChat has more than 1.2 billion monthly active users, while its QQ app has approximately 700million month active users. Whereas ByteDance’s Douyin said that it has an average of 600 million active users every day.
Fights take on new significance
The two companies have long been feuding. Since 2018, the two China technology companies have regularly accused each other of unfair competition. As a result of their frequent feuding, Chinese media even set a nickname for them, called the “Tou-Teng big fight”. This nickname comes from ByteDance’s news app “Toutiao” and Tencent’s Chinese name “Teng Xun.”
However, the fight takes on new significance now as there is some upheaval in China’s tech industry.
Chinese regulators pulled the IPO of Ant Group is the major cause for this upheaval. Since then, Chinese regulators have issued a new guideline to prevent internet monopolies. Furthermore, they even opened an investigation into Alibaba over antitrust concerns.
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