The government of India issued a mass ban on a lot of Chinese-developed mobile applications. Since June this year, 59 apps were already reported to have been banned due to alleged privacy breach violations backed by the Chinese communists, using their technology from apps like Tiktok, to giant smartphone firms like Huawei for such activities.
One of the massive consequences of the ban was the 2% drop in the shares of Tencent, a Chinese tech conglomerate. Tencent develops mobile apps, mostly gaming, and one of the popular applications that it has made is PUBG. PUBG, or Playerunknown Battlegrounds, is an online multiplayer battle, a first-person shooting game where the main goal is to survive.
The Ministry of Electronics and Information Technology in India declared the ban of the 118 apps last Wednesday saying that the ones selected for banning exhibited alleged engagement “in activities which [are] prejudicial to sovereignty and integrity of India, defense of India, security of state and public order.”
PUBG was among the 117 other applications banned in India, where a large portion of app users are from. The drop, albeit a small percentage, equates to billions of losses in the company’s total market cap. This is because India is where PUBG’s largest user base is, although it isn’t the app’s largest revenue generating side, the number of users is also a huge factor.
The country accounts for 24% or 175 million of PUBG’s total mobile downloads. Other Tencent apps that were included in the ban are the lite version of PUBG and a couple of WeChat versions.
The tech company has been experiencing a downhill slope in its shares these past few months due to the tension between China and other nations like the US, which stemmed from economical battles. Tencent had a 10% fall last month on the Hong Kong stock market when the US banned WeChat.