UPDATE: Tencent’s games have been relisted on the Huawei App store after they were pulled off over what is alleged to be a dispute over revenue sharing. Apparently, both parties have finally reached a consensus but there is no official statement to that effect. The original story continues below.

Tencent has confirmed that Huawei has removed its (Tencent’s) online game catalog from Huawei’s app store due to the failure of both companies to reach an agreement on revenue sharing.

A statement by Tencent reads; “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.”

Although Xiaomi is referred to as China’s Apple, in the real sense, Huawei is the company that is the equivalent of Apple in China in terms of revenue and market share. Huawei presently controls 41.4% share of the China mobile phone market and 14.9% of the global market, according to data from market research firms IDC and Canalys.

Although Tencent sells some of the top-ranked online games worldwide, its partnership with Huawei is an important one as it leverages the hundreds of millions of Huawei phones that is in circulation in China, Tencent’s biggest market.

Huawei and Tencent did not immediately respond to a request by Reuters seeking comment. However, a source familiar with the matter hinted that the games were removed because the companies could not agree on a revenue-sharing deal for the app store sales. Huawei had reportedly insisted on receiving a 50% cut, a term Tencent disagrees with.

Tencent hints that they are actively communicating and negotiating with Huawei’s mobile game platform in a bid to reach a resolution as soon as possible. The brand also extended an apology to all users for the inconvenience.

Apart from Tencent, there is mounting resistance from game developers to Huawei’s revenue demands. Last year, Shanghai-based developer Mihoyo, decided not to place its hit game “Genshin Impact” on Huawei’s app store due to failure to reach an agreement with the commission structure for sales.

This dispute is reminiscent of the imbroglio between Apple and Epic Games which saw Apple remove Fortnite and other Epic Games’ titles from the App store due to disagreement over revenue collection.

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Huawei’s ever-expanding App store, the AppGallery has a new addition today – Bolt. The emerging ride-hailing app in Europe is often considered as a cheaper alternative to Uber especially in cities like London. And with this addition, Huawei users finally have a popular ride-hailing service on its own app store.

Bolt’s presence on the Huawei AppGallery is a win-win for both the companies. Despite the US ban, Huawei is still the third-largest smartphone maker in Europe with a solid 18% market share. However, until today, AppGallery lacked a popular ride-hailing app like Uber. Technically, you could get the missing apps via third-party app stores like APKPure and Amazon App Store for Android. But now, Bolt fills this void without the need to download any other app store.

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Bolt has been gaining a lot of attention in the past few months. In fact, in June 2020, it was voted as the Hottest Unicorn in Europe! The startup recently raised €100 million from Naya Capital Management which it will use to expand its ride-hailing, e-scooter, and even food delivery businesses.

Huawei has managed to add a number of important apps to its AppGallery this year. You’ll find popular apps in multiple categories like Deezer, TIDAL, MX Player, RT, UKTVPlay, Eurosport, Premier League in media and entertainment and Viber, Telegram, TikTok, Tinder, Zoom, Badoo in social. And as of March 2020, Huawei has already integrated over 60,000 apps with HMS Core.

With no signs of respite from the ban, it makes sense for Huawei to invest heavily in its own products like the AppGallery. In this regard, the company recently launched the HUAWEI HMS App Innovation Contest – with an award pool of USD$1 Million Prize.

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