Beijing continues its work of undermining its national digital giants. Chinese authorities last week ordered Tencent to end exclusive contracts with music copyright holders. This is the last avatar of a campaign orchestrated for many months to bring its digital giants into line. In fact, the Chinese authorities have given Tencent management 30 days to terminate these copyright contracts in order to “restore competition in the market”.
According to the Chinese regulator’s report, Tencent currently controls more than 8% of “exclusive music library resources” in China, following its acquisition of China Music Group in 2016. Tencent has further expanded its business in the booming music industry. music online earlier this year, by acquiring Lazy Audio, a China-based audio platform that provides access to audiobooks, Chinese comedies, podcasts and other radio shows, for 2.7 billion yuan – or 350 million euros.
Late last year, the market regulator fined Tencent-backed publisher China Literature and Alibaba for failing to properly report past acquisitions for clearance. China Literature was fined for failing to report its acquisition of New Classics Media in 2018. Acquisitions for which Alibaba has been fined include its $ 692 million investment in Intime in 2014 and the e-commerce giant’s $ 2.6 billion offer in 2017 to privatize Intime.
A still untouchable success
While Beijing’s campaign to undermine its national digital giants continues, it does not affect their success. Tencent said that in the first half of 2021, the use of its VooV Meeting video conferencing platform jumped 26% globally. The Chinese giant also said that daily active users of Tencent Meeting, the Chinese mainland version of VooV Meeting, reached more than 10 million users within two months of its launch last year.
Race Results: VooV Meeting was the “fastest” videoconferencing and audio conferencing platform to reach over 100 million users, reaching the figure in 245 days, Tencent management argues.
“With the continued increase in the number of users and download rates of VooV Meeting, Tencent Cloud strives to provide more efficient, reliable and convenient features to businesses and individuals who use video conferencing as an important tool. for their development and corporate communication, ”said Poshu Yeung, senior vice president of Tencent Cloud International.