Chinese companies Huawei and Tencent recently had a spat over at the mobile app market in their home country. The spat saw the latter’s games getting removed from the former’s AppGallery in the country. That being said, new reports indicate that the move has been reversed after some negotiating between the two.
Bloomberg first reported the mass removal. The reason for it was murky. On one hand, Huawei claimed that Tencent was looking to stop working with the former. But on the other hand Tencent claims that the agreement between the two companies expired before a new one was signed.
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Not too long after, Reuters reported that the removed apps were reinstated after further negotiations. The report also included additional information regarding the initial negotiation breakdown. Which sounds quite outrageous, as the report says that Huawei as asking for a 50% cut. This is opposed to the 30% that most of us are used to hearing.
The Reuters report also says that other game devs have opposed Huawei’s revenue demands. Which is understandable, especially when there’s already such an uproar over a 30% cut. Though, it’s worth mentioning that this only applies to games in China. Elsewhere, the company charges the same 30% commission for games like nearly every other app store.
(Source: Bloomberg, Reuters, Huawei)
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