Late last month, the Indian government banned a total of 59 Chinese apps citing security concerns. Three of these apps namely UC Browser, UC News, and VidMate are owned by UCWeb, a subsidiary of Alibaba. Now, after weeks, this company lays off its employees in India as it couldn’t provide services in the country. Similarly, Club Factory, another banned app has halted payments to its Indian sellers.
In retaliation to a clash between Indian and Chinese soldiers at the Himalayan border, the Indian government announced the ban of 59 Chinese apps on June 29. On the very next day, all of these apps were removed from Google Play Store and Apple App Store. Internet Service Providers (ISP) in the country even blocked access to these apps and their websites.
Some companies like TikTok and Xiaomi (Mi Community) came forward themselves issuing an official statement about halting their services.
Whereas, UCWeb sent out a letter (July 15) to its employees informing that they are being laid off according to a report by Reuters. The letter read, “This termination is on account of the ban imposed by the government of India on UCWeb and Vmate, hampering the company’s ability to continue providing services in India”.
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UCWeb also issued a statement saying that it had stopped its services in India abiding the government order. However, it did not mention if it had shut operations entirely.
UC Browser had 130 million monthly active users in India. The company employed less than 100 direct individuals and hundreds of third-party workers.
On the other hand, Club Factory, an eCommerce company, informed its sellers in India that it is “invoking a force majeure clause – freeing it from contractual obligations”.
The company’s letter to its some 30,000 Indian sellers said, “We hereby wish to inform that all settlements with sellers on the CF app and website are hereby being put on hold until the ban of the CF app and website is lifted”.
Club Factory’s official statement says that it has temporarily halted its business activities in India and is working with the government to submit clarifications from its end.
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