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Tencent's online game offerings have been removed from Huawei's app store since the two companies failed to reach an agreement, according to both parties' statements on Friday.
Chinese telecom giant Huawei's action was taken after Tencent made a "big change" on December 31 to how the companies work with each other, according to an official announcement posted on Huawei's gaming application, while no details of the change were elaborated.
Huawei said its decision followed an assessment by its legal team and was based on the premise that Tencent is unilaterally asking to halt cooperation.
"Due to the failure of Huawei's mobile game platform to renew its contract with our Mobile Game Promotion Project Agreement as scheduled, relevant products of Tencent Games were suddenly removed from the shelves early this morning," Tencent said in a statement.
"At present, active communication is being made to try to resume as soon as possible," it said.
Tencent sells some of the top-ranked online games worldwide, while Huawei has a 41.4-percent share of the China mobile phone market and 14.9 percent of the global market, according to data from market research firms IDC and Canalys.
The games were removed because the companies could not agree on a revenue sharing deal for the app store sales. Huawei insists on receiving a 50-percent cut, Reuters reported, citing a source.
There was already some resistance from game developers to Huawei's revenue demands. This included Shanghai-based developer Mihoyo, which last year decided not to place its hit game "Genshin Impact" on Huawei's app store because it did not agree with the commission structure for sales.
(With input from Reuters)
(Cover: The logo of Tencent Games. /CFP)
