What’s new: ByteDance Ltd.’s short video app Douyin has been ordered by a Chinese court to remove advertising about 4K streaming rights to the 2022 FIFA World Cup after being accused of unfair competition by a China Mobile Ltd. subsidiary.
Video streaming platform Migu claimed that the TikTok twin had been falsely advertising it has the right to livestream the football tournament in ultra-high definition, when in fact it is Migu that has that exclusive license, according to a Shanghai court order published on Friday.
The court responded by ordering Douyin to remove the “4K ultra-high definition” tagline in its ads related to the World Cup matches.
The background: Migu charges users to watch the World Cup in 4K with a membership fee, while Douyin offers the content for free.
Douyin’s “false advertising” with the 4K label have drained the number of users and undercut membership fees on Migu’s platform, according to the latter.
A person in charge of Douyin’s legal department told Caixin that the platform obtains a 4K feed from China Media Group, the parent of state broadcaster China Central Television, under their contract, and that Douyin would appeal the court order.
China Media Group has exclusive local broadcast rights to the World Cup. In June, Douyin announced that it was chosen as a partner by the group, as the short video platform has been eager to develop sports events-related content in recent years.
Contact reporter Kelsey Cheng (kelseycheng@caixin.com)
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