Jitterbug 2 formally filed a complaint with the Beijing Intellectual Property Court against Tencent for monopoly. This is the first anti-monopoly case on Internet platforms since the publication of the “Anti-monopoly Guidelines on the Platform Economy Sector” issued by China in late 2020, and the first anti-monopoly lawsuit between Internet platforms.
Because Tencent restricts users from sharing content from Jitterbug through WeChat and qq, Jitterbug argues that Tencent’s blocking of Jitterbug is symptomatic of an abuse of dominant market position.
China Business News reports that in April 2018, WeChat and QQ began blocking ShakeYin, and users sharing ShakeYin links to the aforementioned platforms were unable to play them properly, which has lasted for nearly three years.
The company’s main goal is to provide the best possible service to its customers, which means that Tencent has a “dominant position in the market”.
The company’s main goal is to provide the best possible service to its customers. The company has also requested the court to order Tencent to immediately stop blocking and to compensate Jinyin for economic losses of RMB 90 million.
Jitterbug further alleges that Tencent’s blocking has not only harmed users’ rights and interests and disrupted the normal operation of Jitterbug’s products and services, but also excluded and restricted market competition. It further alleges that Tencent’s monopolistic behavior has hindered technological progress and innovation and distorted competition in other fields in order to consolidate its own existing market position.
Jitterbug was monopolized for three years before suing Tencent, and China Business News reports that there is a close relationship with the current anti-monopoly situation in China. at the end of 2020, China’s State Administration of Market Supervision issued “Guidelines on Anti-monopoly in the Platform Economy”, which sets out requirements for Internet platforms to abuse their dominant position, provides for monopoly and unfair competition, and strengthens market supervision capabilities.
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