China's big tech companies are now fighting with each other
February 3, 2021. Summarized by summa-bot.
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As China sharpens its antitrust crackdown on the country's massive tech companies, two of the industry's biggest players are taking the fight to each other.
Hong Kong (CNN Business)As China sharpens its antitrust crackdown on the country's massive tech companies, two of the industry's biggest players are taking the fight to each other.
Douyin — the Chinese version of short-form video app TikTok -— sued Tencent (TCEHY) on Tuesday, claiming that the Shenzhen-based social media firm has abused its "market dominance" to edge out rivals.
Douyin, which like TikTok is owned by Beijing-based ByteDance, filed a lawsuit alleging that Tencent's WeChat and QQ messaging apps ban their users from sharing content from Douyin for three years, the company said Tuesday in a statement it published on its official WeChat account.
While CNN Business has not seen the suit filed with the Beijing Intellectual Property Court, several state media outlets, including the Beijing Daily, have reported that Douyin is asking Tencent to lift its content restrictions and pay 90 million yuan ($14 million) in 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.
Tencent fired back, saying in its own statement Tuesday on WeChat that it plans to sue ByteDance, too.
"The relevant allegations from ByteDance are purely false and malicious framing," Tencent said.
ByteDance and Tencent are two of the biggest players in Chinese social media.
Tencent's WeChat has more than 1. 2 billion monthly active users, while its QQ app has nearly 700 million monthly active users.
ByteDance's Douyin doesn't release monthly figures, but it said last month that it averages some 600 million active users every day.
Chinese media has even nicknamed the spat the "Tou-Teng big fight," a play on words using ByteDance's news app "Toutiao" and Tencent's Chinese name "Teng Xun. "