he ran Remove games a company Tencent from Huawei’s App Store on Friday temporarily, on the first day of the new year, after a dispute over revenue sharing between Chinese companies regarding a promotional agreement that was resolved later in the same day.
Huawei App Store users for most of Friday were unable to download Tencent games from Huawei AppGallery, including its most popular mobile game Honor of Kings, but Tencent games installed via phones or downloaded from other Android app stores are still available.
An official notice published in the Huawei gaming community said: Tencent Games unilaterally made significant changes to the cooperation between the two parties, which led to major obstacles to the continuation of cooperation, and after careful evaluation from our legal team, we had to comply with the relevant request by one of Tencent To stop cooperation and remove Tencent games from Huawei AppGallery.
The notice added: Huawei admires the achievements and absolute position in the market for Tencent gaming business, while we do not agree, we can understand Tencent’s demand arising from its position.
Revenue from Tencent’s online gaming business grew 45 percent year-over-year in the September quarter, the fastest since the third quarter of 2017, according to its results announced in November.
A notice posted in the gaming community in Tencent said: The games were suddenly removed in the middle of the night due to the failure to renew the mobile game promotion project agreement between the parties.
The notice also stated that Tencent has been actively communicating and negotiating with Huawei and hopes to bring back gaming applications as soon as possible.
On Friday night, Tencent published another notice saying that the company has reached an agreement with Huawei.
The notice said that Tencent games are now available in the Huawei app store again, and both sides continue to work together to bring better experiences and services to customers.
A similar dispute broke out publicly in August in the United States when Apple and Google removed Epic Games’ Fortnite from app stores for violating in-app payment guidelines, prompting Epic Games to file federal lawsuits challenging the rule.
Huawei was insisting that 50 percent of sales of Tencent games be deducted from its app store, and Tencent games were removed because the companies were unable to agree to the deal.
Tencent sells some of the best online games around the world, while Huawei has a 41.4 percent share of the Chinese mobile market and 14.9 percent of the global market.
A number of game developers have opposed Huawei’s revenue requests, and reports in September stated that two Chinese games, Rise of Kingdoms and Genshin Impact, were unable to reach a deal with app stores, including Huawei, due to differences over revenue sharing.
It’s rare for Chinese tech giants to engage in disputes with companies in public places because such disputes are often resolved behind closed doors.
Tencent said in November: Honor of Kings became the first game on any platform with an average of more than 100 million daily active users.
The Huawei App Store had more than 390 million active users worldwide as of November 2019, and it is still small compared to the Google Play Store which had over 2 billion monthly active users in the same period.