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BEIJING (Reuters) – Tencent’s online game offerings were removed from Huawei’s app store because the two companies failed to reach an agreement on revenue sharing, Tencent and a source said on Friday.
“Due to the failure of Huawei’s mobile gaming platform to renew its contract with our Mobile Games Promotion Project Agreement as scheduled, relevant Tencent Games products were suddenly removed from the shelves this morning,” Tencent said at a release.
“At present, active communication is being carried out to try to resume it as soon as possible,” he said.
Tencent sells some of the highest-ranked online games in the world, while Huawei has a 41.4% share of the Chinese mobile phone market and 14.9% of the global market, according to data from research firms. market IDC and Canalys.
A source said the games were removed because the companies could not agree on a revenue-sharing arrangement for app store sales. Huawei insists on receiving a 50% cut, the source said.
Huawei did not immediately respond to a request for comment. Tencent did not immediately respond to a request seeking comment on whether the firms disagreed on revenue sharing.
There was already some resistance from game developers to Huawei’s revenue demands. This included Shanghai-based developer Mihoyo, who last year decided not to put his hit game “Genshin Impact” on Huawei’s app store because he did not agree with the sales commission structure.
(Pei Li reporting on Hong Kong and Beijing Newsroom: Edited by Neil Fullick)
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