China bans Tencent Holdings from updating and releasing new apps
The Chinese government's Ministry of Industry and Information Technology has reportedly instructed app stores and platforms to prevent Tencent Holdings from updating its existing apps and launching any new ones as a part of a "temporary administrative guidance." The application developer said in a statement that it is cooperating with the government to inspect its apps, tacitly confirming the report. Here are more details.
Why does the story matter?
Tencent Holdings runs over 70 apps and has published 100+ games under the Tencent Mobile Games banner. It also runs China's WhatsApp rival WeChat catering to around 1.2 billion users. The country has tightened regulations surrounding violent video games, including Tencent's hit battle royale title PUBG. The order to suspend updates comes amid the government's scrutiny of the Chinese tech sector.
Tencent was allegedly found violating user rights, data protection law
The South China Morning Post reported that the latest suspension order disallows the platforms where apps are distributed from giving Tencent Holdings permission to update its apps or put new ones out. This drastic action was taken because the ministry found the developer violating user rights and data protection laws while unwary users continued downloading its apps, The Gamer reported.
Tencent's offerings outside China escape unscathed
Interestingly, the ban will only affect the developer's offerings in China, so Tencent Games' successful titles such as Pokémon Unite and League of Legends will continue to receive updates in other countries. Although Tencent Holdings is worth over $500 billion, it has lost 20% of its value since the end of 2020, primarily due to the tightening government regulations in China.
Continuously working to improve user protection features: Tencent
In a statement, Tencent said, "We are continuously working to enhance user protection features within our apps, and also have regular cooperation with relevant government agencies to ensure regulatory compliance. Our apps remain functional and available for download." Presently, it is not known how long the suspension will last. Moreover, the Chinese ministry has not released any information about the ban.
