Chinese Tech Giant Tencent and Chili Sauce Company Dispute Over Multi-Million Dollar Contract

Chinese Tech Giant Tencent and Chili Sauce Company Dispute Over Multi-Million Dollar Contract
A man walks past an advertisement for the WeChat social media platform, owned by China's Tencent, at Hong Kong International Airport on Aug. 21, 2017. (Richard A. Brooks/AFP/Getty Images
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Tencent recently filed a lawsuit against Chinese food brand Lao Gan Ma after the tech giant accused the latter of breaching a contract. Lao Gan Ma allegedly claimed it had not signed an ad deal with Tencent and filed a complaint with the local police, leading to the arrest of three suspects accused of posing as marketing representatives of the chili sauce company.

Tencent Files Lawsuit Against Lao Gan Ma

Tencent, the Chinese internet-based platform and multinational conglomerate holding company, filed a lawsuit against the chili sauce company Lao Gan Ma (“Old Godmother”) for failing to pay advertising fees worth more than tens of millions of yuan under a 2019 contract, according to Chinese media reports.

A court in Shenzhen ruled in favor of Tencent and froze 16.24 million yuan ($2.3 million) in Lao Gan Ma’s bank account on June 29.

Zhou Xinjian
Zhou Xinjian
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