Chinese blockchain company RongxinChain has alleged that Tencent’s IOU applet is operating in breach of the country’s Unfair Competition Law, according to a report by the Shenzhen Baoan District Credit Promotion Association.

Fast facts

  • Tencent’s IOU blockchain applet went online in July on the company’s “super app,” Wechat, allowing users to issue legally valid IOUs recorded on the blockchain. 
  • RongxinChain said it had previously launched a very similar applet named Liaodaibao on WeChat’s applet platform, before IOU was launched. Liandaibao was removed from WeChat in March for “violating the WeChat Applet Platform Operation Specification.”
  • The company said it had reported the case to China’s Anti-Monopoly Bureau and to the Anti-Unfair Competition Bureau at the State Administration for Market Regulation.
  • Tencent has recently been caught up various antitrust issues in China. Last month, it was fined fined 500,000 yuan (US$77,129) for violating antitrust law by acquiring China Music Group and deprived of exclusive music rights. In April, Tencent received a monopoly penalty of 1 million yuan for acquiring two second-hand car platforms.