NetEase’s Cloud Music sues Tencent Music, claims unfair competition

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HONG KONG/BEIJING, April 27 (Reuters) – NetEase’s Cloud Music unit has sued Tencent Music Entertainment (TME) (TME.N), accusing it of unfair competition and plagiarizing its app design, it said. society on Wednesday.

The move is the latest development in a long-running rivalry between the two Chinese tech giants that are vying to add users and sign popular musicians.

Features of TME’s suite of music streaming apps allowed its users to bypass copyright protection and play songs licensed from NetEase Cloud Music, the company said, accusing TME of copying the design and certain functionalities of its application.

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“We urge TME to immediately rectify its products and business and end all unfair competitive behavior,” NetEase Cloud Music said in a statement on its social media platform account Weibo.

In response, Mo Chen, head of branding and public relations at TME, posted a message via his personal account on WeChat, Tencent’s social networking app, on Wednesday, saying, “At TME, we don’t we will not engage in a war of words… Related evidence has been preserved and we have taken relevant legal action.”

TME declined to elaborate on Chen’s statement.

Last year, Tencent was fined on anti-trust grounds and banned from signing exclusive music copyright pacts, prompting it to terminate all such deals. Read more

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Reporting by Josh Ye in Hong Kong, Yingzhi Yang and Brenda Goh; Editing by Clarence Fernandez and Stephen Coates

Our standards: The Thomson Reuters Trust Principles.

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