China Court tells ByteDance to Proceed with Legal Proceedings against Tencent over Monopoly Accusations.
ByteDance approached The Beijing Intellectual Property Court which permitted to proceed with the lawsuit against Tencent. ByteDance alleged that Tencent abuses its position in the market with the help of its monopolistic business practices. Moreover, Tencent’s restriction on Douyin, the Chinese version of TikTok, is in direct violation of China’s anti-monopoly draft rules.
Tencent has continuously blocked Douyin’s integration with its WeChat and QQ for more than three years now. Douyin spokesperson said, “Tencent’s behavior no doubt constitutes monopolistic behavior achieved by abusing market domination to exclude and limit competition, which the proposed anti-monopoly law prohibits.
On the contrary, Tencent outrightly rejected the accusation and termed it as malicious defamation. Tencent further added that Douyin which is used by more than 600 million users every day is engaged in anti-competitive and illegal practices to access WeChat’s user database. Moreover, the company is planning to sue ByteDance for causing harm to WeChat’s user rights and ecosystem.
The Chinese government is all up for reining in the monopolistic behavior of big tech firms after cutting them slack for more than two decades. Market regulations are being revised and new anti-monopoly laws are being drafted which would open the floodgates of investigations and lawsuits.