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Chinese companies start antitrust feud: TikTok opposes WeChat policy
China’s ByteDance has filed an antitrust suit in Beijing today against its rival Tencent Holdings Ltd. According to the company, Tencent is abusing its monopoly in the messenger market in China and violating local laws on business integrity. Bloomberg reports.
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Tencent owns QQ and WeChat messengers, according to ByteDance, since 20221 the company has not made it possible to share videos from the Douyin service (as TikTok is called in China). Thus, Tencent not only restricts QQ and WeChat users in functionality, but also prevents ByteDance from working and expanding the audience with their Douyin. At the same time, QQ, together with WeChat, are the main means for digital communication in China, and there are simply no analogues that could provide similar functionality from other local developers. Thus, Tencent “occupies a dominant position in the market”. In a lawsuit, ByteDance demands to lift such restrictions against their services in messengers, as well as pay compensation in the amount of 90 million yuan (this is about $ 14 million).
As Bloomberg writes: “WeChat is used by more than 1 billion people, and Tencent is creating a controlled platform from the messenger, in which developers decide for users what content can be watched and what can be exchanged.”.
This isn’t the first time ByteDance has sued Tencent, but this is the first time they’ve been able to do so on an antitrust basis. At the same time, WeChat, being a super application, six months ago began to include a section with short videos. With this move, Tencent decided to try to compete with Douyin from ByteDance, but the latter are still leaders in this area.