China’s Big Tech is now at war with each other

China’s Big Tech is now at war with each other

As China intensifies antitrust measures against large technology companies in the country, the two largest players in the industry are fighting each other..

Douyin, the Chinese version of the short video app TikTok, sued Tencent on Tuesday, claiming that the Shenzhen-based social media and app development company had abused its «dominating the market», to get ahead of the competition.

Douyin, which, like TikTok, is owned by Beijing-based ByteDance, has filed a lawsuit alleging that Tencent’s messaging apps WeChat and QQ have prohibited their users from sharing content from Douyin for three years, the company said in a posting posted on official WeChat account. .

Several state media outlets, including the Beijing Daily, reported that Douyin is asking Tencent to lift content restrictions and pay 90 million yuan ($ 14 million) in economic damages and costs..

«We believe competition is better for consumers and fosters innovation», – Douyin spokesman said in a statement to CNN Business. «We filed this lawsuit to protect our rights and the rights of our users».

Tencent fired back, saying on WeChat Tuesday that it plans to sue ByteDance as well..

«The related accusations by ByteDance are purely false and malicious, Tencent said. Investment holding accused Douyin of «illegally obtaining information from WeChat users» and violation of consumer rights.

China's Big Tech is now at war with each other

ByteDance and Tencent are the two largest players in the Chinese social media market. Tencent’s WeChat has over 1.2 billion monthly active users, and the QQ app has nearly 700 million monthly active users. ByteDance’s Douyin doesn’t publish monthly data, but reported last month that it averages about 600 million daily active users..

The two companies have been at war for a while. Since 2018, they have regularly accused each other of unfair competition. Chinese media even dubbed the quarrel «big battle Tou-Teng», a play on words using the ByteDance news app «Toutiao» and the Chinese name Tencent «Teng xun».

But this struggle is now taking on new meaning as China’s tech industry is shaken.

Last November, Chinese regulators withdrew a highly anticipated initial public offering from Ant Group, Alibaba’s financial arm. Jack Ma. Since then, they have ordered the company to rethink its business and criticized it for ousting competitors from the market..

Regulators have also issued new guidelines that they say are aimed at preventing internet monopolies, and have even launched an investigation into Alibaba over antitrust concerns..