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Tencent Games Said to Be Removed From Huawei App Store Over Revenue Dispute

Huawei insists on receiving a 50-percent cut on revenues, according to a source.

Tencent Games Said to Be Removed From Huawei App Store Over Revenue Dispute

Tencent did not immediately respond to a request seeking comment on whether the firms had disagreed

Highlights
  • Tencent sells some of the top-ranked online games worldwide
  • Huawei has a 41.4 percent share of the China mobile phone market
  • There was already resistance from developers to Huawei's revenue demands

Tencent's online game offerings have been removed from Huawei's app store since 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 game platform to renew its contract with our Mobile Game Promotion Project Agreement as scheduled, relevant products of Tencent Games were suddenly removed from the shelves early this morning," Tencent said in a statement.

"At present, active communication is being made to try to resume as soon as possible," it said.

Tencent sells some of the top-ranked online games worldwide, while Huawei has a 41.4 percent share of the China mobile phone market and 14.9 percent of the global market, according to data from market research firms IDC and Canalys.

A source said the games were removed because the companies could not agree on a revenue sharing deal for the app store sales. Huawei insists on receiving a 50 percent cut, the source said.

Huawei did not immediately respond to a request seeking comment. Tencent did not immediately respond to a request seeking comment on whether the firms had disagreed about revenue sharing.

There was already some resistance from games developers to Huawei's revenue demands. This included Shanghai-based developer Mihoyo, which last year decided not to place its hit game "Genshin Impact" on Huawei's app store because it did not agree with the commission structure for sales.

© Thomson Reuters 2020


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