NetEase Cloud Music Sues SM Entertainment Over Alleged Market Abuse
NetEase Cloud Music has filed a lawsuit against South Korean K-pop giant SM Entertainment, alleging abuse of dominant market position regarding music licensing. The case, scheduled for trial on August 6 at the Hangzhou Intermediate People’s Court, has sparked significant discussion on Chinese social media. The dispute highlights intensifying competition in China’s digital music sector, complicated by Tencent Music Entertainment’s recent acquisition of a major stake in SM. As NetEase’s primary rival, Tencent’s dual role as shareholder and competitor raises concerns about potential conflicts of interest and market fairness. This legal action follows a turbulent history between the firms, including the removal of SM content from NetEase in 2019 and its subsequent return in 2022 after regulatory changes ended exclusive licensing in China. While NetEase reports strong financial growth and expanded partnerships with other Korean labels, SM’s shares dropped following the news. The outcome may significantly influence future licensing dynamics and competitive structures within the Asian entertainment industry.
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NetEase Cloud Music Sues SM Entertainment Over Alleged Market Abuse
NetEase Cloud Music has filed a lawsuit against South Korean K-pop giant SM Entertainment, alleging abuse of dominant market position regarding music licensing. The case, scheduled for trial on August 6 at the Hangzhou Intermediate People’s Court, has sparked significant discussion on Chinese social media. The dispute highlights intensifying competition in China’s digital music sector, complicated by Tencent Music Entertainment’s recent acquisition of a major stake in SM. As NetEase’s primary rival, Tencent’s dual role as shareholder and competitor raises concerns about potential conflicts of interest and market fairness. This legal action follows a turbulent history between the firms, including the removal of SM content from NetEase in 2019 and its subsequent return in 2022 after regulatory changes ended exclusive licensing in China. While NetEase reports strong financial growth and expanded partnerships with other Korean labels, SM’s shares dropped following the news. The outcome may significantly influence future licensing dynamics and competitive structures within the Asian entertainment industry.
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