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ByteDance Sues Tencent For Monopolistic Behaviour

February 2, 2021 5:05 pm

Beijing (PingWest)- Tiktok owner Bytedance sued Tencent Holdings on Tuesday, has filed a lawsuit against Tencent for monopolistic behaviour and the company is seeking CNY 90 million in compensation.

According to a statement, Bytedance said Tencent block access to Douyin (Chinese version of Tiktok) and restricts users from sharing Douyin content on its instant meassaging apps WeChat and QQ, which has violated anti-monopoly law.

“We believe that competition is better for consumers and promote innovation,” Douyin said in a statement. “We have filed a lawsuit to protect our rights and those of our users.”

As competition between Chinese technology companies intensified, they have been accusing each other of engaging anti-competitive behavior

For example, Tencent has filed a lawsuit accusing ByteDance of defamation, the lawsuit indicated that ByteDance’s Toutiao and Douyin engaged in distributing and disseminating expressions, articles and videos to defame Tencent.

In April last year, ByteDance said in an public letter that Tencent has blocked page link to its remote collaboration app Feishu on its platform.

According to the announcement, Feishu’s users have been complaining since Saturday that they could not open page links shared on WeChat to Feishu’s app or any other related links.

Douyin’s lawsuit comes at the time when Chinese regulators step up regulations on tech giants. Beijing issued draft rules in November 2020 aimed at preventing monopolistic behaviour by internet firms, the State Administration of Market Regulation later in December announced the launch of an antitrust investigation into e-commerce giant Alibaba.