Short video app Douyin sues Tencent alleging monopolistic behaviour

Photo: REUTERS

ByteDance’s short video app Douyin is suing Tencent Holdings in a Beijing court for monopolistic behaviour, intensifying an ongoing feud between the two Chinese technology giants.

ByteDance said on Tuesday it was filing a complaint against Tencent for restricting users from sharing Douyin content on its instant messaging apps WeChat and QQ, which should be prohibited by anti-monopoly law.

It has asked the court to order Tencent to desist with such restrictions, ByteDance said.

“We believe that competition is better for consumers and promotes innovation,” Douyin said in a statement. It asked Tencent to pay it 90 million yuan ($13.95 million) in compensation in its complaint.

“We have filed a lawsuit to protect our rights and those of our users.”

Tencent said in a statement it had not received relevant materials pertaining to Douyin‘s complaint and described ByteDance’s allegations as “false” and “malicious.”

“Many ByteDance-developed products, including Douyin, illegally obtain WeChat users’ personal information,” Tencent said in a statement, adding: “We’ll continue to file lawsuits” against ByteDance.

ByteDance declined to comment on Tencent‘s remarks. Douyin is the Chinese version of ByteDance’s hit TikTok short video app.

ByteDance competes with Tencent in social media in China and has challenged Tencent previously. In 2018, it sued Tencent for anti-competitive behaviour, alleging Tencent‘s social platform QQ zone and its Guanjia software blocked ByteDance’s news aggregator Toutiao’s links. Tencent filed a lawsuit accusing ByteDance of defamation around the same time.

Douyin‘s lawsuit comes as Chinese regulators step up oversight of tech giants. Beijing issued draft rules in November aimed at preventing monopolistic behaviour by internet firms, marking China’s first serious regulatory move against the sector.

In December, Tencent-backed China Literature was fined 500,000 yuan, the maximum under a 2008 anti-monopoly law, for not reporting past deals properly for anti-trust reviews.

In the same month, China’s market regulator said it was probing a merger between Tencent-backed live game-streaming companies Douyu International Holdings and Huya Inc.

Reuters

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.