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. However later, Tencent Games Restored on Huawei App Store. It seems like the dispute has now been settled down.
Huawei was insisting on a 50% cut of Tencent’s game sales on the app store. On the other hand, Tencent removed its app from the app store because both companies had been unable to agree on a deal.
Tencent said in a statement, “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 sells some of the top-ranked online games worldwide. According to data from market research firms IDC and Canalys, Huawei has a 41.4% share of the China mobile phone market and 14.9% of the global market.
Huawei did not immediately respond to a request seeking comment. Similarly, Tencent also did not immediately respond to a request seeking comment on whether the firms had disagreed about revenue sharing. Later, Tencent responded when the games were restored on the app store after further negotiations. Tencent said, “both sides will continue to work together to bring better experiences and services to consumers”.
A number of game developers have opposed Huawei’s revenue demands, including Shanghai-based Mihoyo company. The company last year decided not to place its hit game “Genshin Impact” on Huawei’s app store because of the sales commission structure.