ByteDance-owned short video app, Douyin, the Mainland Chinese version of TikTok, has filed a complaint with a Beijing court accusing WeChat parent company, Tencent, for monopolistic behaviour. It has asked for 90 million yuan (almost $14 million) in compensation.
Both Douyin and WeChat have become vital tools for global fashion and beauty giants, from Gucci to H&M and Estée Lauder, to market to China’s digitally native youth and, increasingly, sell products via increasingly sophisticated e-commerce operations.
The complaint is based on the restrictions Tencent places on users sharing content from Douyin on its apps, including WeChat and QQ. The action comes as China ramps up a broader crackdown on tech giants for anti-competitive practices.