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Epic CEO says Apple, Google must be stopped from monopoly abuse
by AFP Staff Writers
Seoul (AFP) Nov 16, 2021

China's NetEase revives listing plan for music streaming app
Hong Kong (AFP) Nov 17, 2021 - Chinese gaming giant NetEase has revived plans to list its music streaming company in Hong Kong after it was initially shelved in the wake of Beijing's regulatory crackdown on big tech firms.

Cloud Village is one of China's most popular music apps alongside a similar service provided by rival Tencent, which dominates the market.

NetEase refiled a preliminary prospectus with the Hong Kong stock exchange late Tuesday signalling plans to list Cloud Village, though it did not say when the listing would take place.

Bloomberg News said NetEase was hoping to raise about $500 million, around half what it had initially hoped its initial public offering plans were first announced earlier this year.

Those proposals were scrapped in August as China unveiled a dizzying array of measures against major tech companies that hammered their share prices and knocked investor confidence in the sector.

The Chinese government has embarked on a broad crackdown on the wider technology sector over the past year, citing concerns that companies were getting too big and powerful.

Saying children were spending too much time playing online games, regulators also targeted the huge gaming sector with new age and playing-time restrictions, while approval of new titles has slowed.

In July, regulators ordered Tencent to give up its exclusive licensing agreements with big record companies, a move that would benefit smaller rivals including Cloud Village.

According to the preliminary prospectus, Cloud Village grew monthly music users to 185 million in the first six months of 2021 while revenue rose 61 percent to $501 million.

The company remains in the red partly because of costs stemming from its fierce rivalry with Tencent.

NetEase operates a Yahoo-like site offering email, news and shopping services in addition to its massive PC and mobile games arm.

-- Bloomberg News contributed to this story --

Gaming giant Epic's CEO on Tuesday launched another broadside at Apple and Google, saying the tech giants must be stopped from abusing their control over the marketplaces for apps.

Epic Games, creator of the hugely popular Fortnite, is locked in bitter legal battles with Apple and Google, whose operating systems run nearly all the smartphones in the world.

Both tech giants charge fees on transactions made on Apple's App Store and Google Play, and contend these are appropriate.

But app makers have become increasingly furious in recent years over that cut.

"Apple and Google... are using their new monopoly power to tax and prevent competition," Epic CEO Tim Sweeney said at the Global Conference for Mobile Application Ecosystem Fairness in Seoul.

"We must not allow these two companies to control our digital lives."

Epic is seeking to force Apple to open up its marketplace to third parties, looking to circumvent the iPhone maker's procedures and commissions of up to 30 percent.

Sweeney also took aim at Google for charging fees on payments it does not process.

"Only a monopoly can do that," he said.

The Epic CEO and other conference participants also praised South Korea, which in August became the first country in the world to pass a law banning Apple and Google from forcing developers to use their payment systems.

- Mounting pressure -

"Google Play's service fee has never been simply for payment processing," it told AFP in response to Sweeney's comments on Tuesday.

"It's how we provide Android and Google Play for free and invest in the many distribution, development, and security services that support developers and consumers."

AFP has reached out to Apple for a response to Sweeney.

Apple CEO Tim Cook defended its cut during court proceedings in May, saying: "We are creating the entire amount of commerce on the store and we are doing that by getting the largest audience there."

Pressure has been mounting on Apple and Google, including from some major developers such as music streaming giant Spotify and dating service Tinder's parent company Match Group.

Apple and Google have also raised the eyebrows of regulators in major jurisdictions such as the European Union, Australia and India.

Both have made some changes to their marketplaces since last year, however.

Google last month announced it would halve its commission on subscriptions to 15 percent starting January 2022, saying 99 percent of developers would qualify for that rate or less.

Apple reduced its commission to 15 percent for newcomers and developers making less than a million dollars annually.

It had already cut its 30 percent commission in half for paid subscriptions after the first year.

qan-sh/mtp

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Indonesia tech giant GoTo raises $1.3 bn ahead of IPO
Jakarta (AFP) Nov 12, 2021
Indonesia's biggest tech firm GoTo said it has raised some $1.3 billion ahead of a planned initial public offering (IPO), including investment from Google and China's Tencent. The pre-IPO fundraising, announced Thursday, follows the May merger of ride-hailing giant GoJek and e-tailer Tokopedia to form GoTo, which together generated some $22 billion in transactions last year, according to the companies. Singapore's state investment fund Temasek, Fidelity International and Abu Dhabi Investment Aut ... read more

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