Tencent allows users to link to rivals on WeChat

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Tencent allows users to link to rivals on WeChat

encent Holdings Ltd. was able for the first time in years to link users on its chief WeChat social media services to competitors, taking initial steps to comply with Beijing's call to dismantle walls around platforms run by the country s online giants.

Users who upgrade to the latest version of the messaging service can access external services such as WeChat's Taobao online mall or ByteDance Ltd. s video app Douyin, both of which were previously walled off from Alibaba Group Holding Ltd.'s billion+ members. That however applies only to one-on-one messaging, not group chats nor Facebook-like Moments pages.

While it s unclear whether the social giant has opened up more of its scores of online services, it is a major step for Tencent, which controls vast swathes of Chinese website along with Alibaba and ByteDance. In a statement announcing the move on Friday, Tencent said it would also provide ways for its users to report suspicious content and work on features for sharing links in wider group discussions.

China s top tech regulator has warned Internet firms to stop blocking links to rival services, prising open so-called walls to stop blocking their growing monopoly on data and protecting consumers in a broader campaign to curb their fierce competition. The government has accused a handful of companies of unfairly protecting their respective spheres: Alibaba in social media via WeChat, Alibaba in e-commerce with Taobao and Tmall and more recently, ByteDance in video using TikTok-cousin Douyin.

Of these two, Alibaba is regarded as benefiting more because it will be able to access Tencent's billion user-profile, while Alibaba — which is fiercely protective of the user experience on its apps — has less incentive to enable people to post shopping links.

The Ministry of Industry and Information Technology organized executives from the country s largest online platforms last week to emphasize the need to end closed ecosystems that impair the flow of commerce. They are also viewed by critics as key to helping Internet companies control user data and market dominance.

China's largest Internet corporations have traditionally blocked links from within their services to rivals content. However, it was unclear what actions regulators want the big tech firms to take, and how is that determined. Local media reported that the MIIT ordered Internet firm to take action Sept. 17.

Alibaba and Tencent executives have said they will publicly embrace a more open Chinese Internet, publicizing the idea. Earlier this year, Alibaba had expected to set up a Taobao Deals app on WeChat and had already invited merchants to participate, Bloomberg News reported. Tencent executives said during the company s most recent quarterly earnings call that it prioritized the user experience and any new product placement should be measured.

Tencent filed suit in February against ByteDance alleging that its rival violated antitrust laws by blocking access to content from Douyin on WeChat and QQ, the country s two largest social media platforms by users. The Shenzhen-based company has called the allegations baseless and malicious.