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Deal
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.
FILE PHOTO: A Tencent Games sign is seen at the China Digital Entertainment Exhibition and Conference (ChinaJoy) in Shanghai, following the coronavirus disease (COVID-19) outbreak, China, July 31, 2020. REUTERS / Aly Song / File Photo
HONG KONG / BEIJING: Tencent’s online games were removed and then reinstalled on Huawei’s app store on Friday in a dispute over revenue sharing from Chinese companies.
Huawei was insisting on a 50 percent reduction in Tencent’s game sales in the app store, and Tencent’s games were removed because the companies had failed to reach an agreement, a Tencent source said.
Tencent sells some of the highest-ranked online games in the world, while Huawei has a 41.4 percent share of the Chinese mobile phone market and 14.9 percent of the global market, data shows from market researchers IDC and Canalys.
The games were restored to the app store after further negotiations, Tencent said, adding that “both parties will continue to work together to provide better experiences and services to consumers.”
Huawei did not immediately respond to a request for comment.
Several game developers have objected to Huawei’s revenue demands, including Shanghai-based Mihoyo, which last year decided not to place its hit game “Genshin Impact” on Huawei’s app store due to the fee structure. sales.
(Reporting by Pei Li in the Hong Kong and Beijing newsroom; Editing by Neil Fullick and David Goodman)
