There’s worrying news from China’s online media world as ByteDance, the $75 billion company behind popular video app TikTok is taking a news site to court for alleged defamation after it published a story about ByteDance’s fake news problem in India.
U.S. tech firms have come to rely on media to help uncover issues, but Chinese tech news site Huxiu has become the latest litigation target of ByteDance, which reportedly surpassed Uber’s valuation after raising $3 billion. The company has sued internet giants Tencent and Baidu in the past year for alleged anti-competitive behavior.
Launched in July as part of ByteDance’s push in India, Helo competes with local media startups such as Xiaomi-backed ShareChat and DailyHunt as well as Facebook. ByteDance operates news app Jinri Toutiao with over 250 million monthly active users in China, according to data services provider QuestMobile. TikTok, branded as Douyin in China, has a reach well beyond its home front and claims 500 million MAUs worldwide with an additional 100 million users gleaned from its Musical.ly buyout.
“An insult and abuse”
On December 4, Huxiu published an opinion piece that condemned Helo and ShareChat for allowing misinformation to spread. One Helo post, for instance, falsely claimed that a Congress leader had suggested that India should help neighboring rival Pakistan clear its debt rather than invest in the State of Unity, a pricey local infrastructure project.
In response, ByteDane filed a lawsuit against Huxiu, saying that the Chinese news site made defamatory statements against it in translating an op-ed by contributor Elliott Zaagman.
The unedited English version is posted on Zaagman’s personal LinkedIn account here. Here is one paragraph that TechNode removed:
Maybe still Zhang is simply a victim of his own success. Few entrepreneurs start a company expecting it to be worth $75 billion. But what he has created may have far broader ramifications. As is demonstrated by Russia’s use of American social networking platforms to interfere in Western elections, misinformation campaigns can be a tool used by adversaries to disrupt a country’s internal politics. At this current moment when China faces greater international tensions, a pushback to their rising influence in Asia, and territorial disputes along their border with India, the last thing that Beijing needs is accusations from an opportunistic Indian politician sounding the alarm about how Beijing-based Chinese companies are spreading misinformation among the impressionable Indian electorate….
And this as well:
Although, on second thought, maybe it makes perfect sense that Zhang Yiming is peddling products that he himself would likely never use. After all, any good drug dealer knows not to get high on their own supply.
In a statement, Huxiu dismissed ByteDance’s accusation for being “wildly untrue” and bringing “major repercussions” for the online publication’s reputation. A spokesperson for Huxiu told TechCrunch that it hasn’t received any summons as the court is still processing the complaint.