After PUBG Ban, Chinese Company Behind PUBG Loses $34 Billion In Two Days
The Chinese tech company has lost around $34 billion ($261.05 HK) of its overall market value over the last two days. And why wouldn¡¯t it, considering India makes up of one-fourth of PUBG Mobile¡¯s user base.
On Wednesday, gamers in India witnessed something truly dreadful. The popular battle royale game PlayerUnknown¡¯s Battlegrounds or PUBG Mobile was banned by the Indian authorities eliminating the game from the Indian versions of Android and iOS app stores in India.
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While this seems like a grave loss to the mobile gaming community in India, it is an even bigger loss for the Chinese company behind it -- Tencent.
The Chinese tech company has lost around $34 billion ($261.05 HK) of its overall market value over the last two days. And why wouldn¡¯t it, considering India makes up of one-fourth of PUBG Mobile¡¯s user base.
As per reports by Bloomberg, this is a second massive drop in the Chinese tech conglomerate¡¯s valuation. The first drop came when its texting app WeChat was banned by POTUS Donald Trump upon allegations of stealing user data and sharing it with Chinese authorities.
In India, authorities do claim that the reason behind banning PUBG Mobile and 118 other apps was because these apps "engaged in activities prejudicial to sovereignty and integrity of India, defence of India, the security of the state and public order".
Tencent has even issued an official statement pertaining to the ban stating, ¡°Tencent takes the protection of user privacy and data seriously. Our apps have always remained in compliance with applicable data protection laws in India and all other markets where we operate. We look forward to engaging Indian authorities to clarify our long-established policy and action in protecting user data, and hope to ensure the continued availability of our apps in India.¡±
Reuters
However, it is important to note that this ban came right after the skirmish between Indian and Chinese troops around the southern banks of Pangong Tso lake.
In case you remember, in June, TikTok -- another major Chinese app -- was banned from the Indian app store along with several other Chinese apps on similar grounds after another face-off between Chinese and Indian troops at the Galwan Valley border that claimed lives of 20 Indian soldiers.
