Core Viewpoint - Tencent and Huawei may have reached a revenue-sharing agreement that reduces the in-app purchase commission for Tencent games on Huawei's AppGallery to 10%-20%, which would significantly benefit Tencent compared to the standard 50% rate [2][7]. Group 1: Agreement Details - The reported agreement would allow Tencent to retain a larger share of in-app purchase revenues, enhancing its profitability [2]. - Both companies have remained silent on the authenticity of the report, with Tencent declining to comment and the media outlet retracting the story shortly after publication [2]. - Industry insiders suggest that while most Android channels publicly disclose their commission rates, negotiations can vary significantly, allowing for potential concessions from Huawei to Tencent due to their respective market positions [2][3]. Group 2: Historical Context - Tencent and Huawei have a history of both competition and collaboration, having faced disputes over cooperation agreements in the past [3][5]. - Previous collaborations include the establishment of innovation labs and joint projects aimed at enhancing mobile gaming and technology [5][6]. - The timing of these collaborations often coincides with critical developments in the mobile internet and gaming sectors, indicating a willingness to cooperate when market opportunities arise [6]. Group 3: Market Dynamics - The current commission structure in the industry is largely influenced by the Hard Core Alliance, which sets a standard 50% commission rate for game developers, potentially raising antitrust concerns [7][8]. - The emergence of alternative distribution channels and the dissatisfaction of major game developers with high commission rates have led to increased negotiations between developers and platforms [8][9]. - The negotiation process is often opaque, with agreements being made on a case-by-case basis, complicating the landscape for smaller developers who lack negotiating power [10][11]. Group 4: Regulatory Environment - Recent government encouragement for more apps to be listed on Huawei's HarmonyOS may influence the dynamics of revenue-sharing agreements [6]. - The potential for lower commission rates on HarmonyOS compared to existing Android platforms could reshape industry standards, although the process remains uncertain [11]. - Concerns about compliance with antitrust laws may lead both Tencent and Huawei to avoid public discussions about their agreements to mitigate scrutiny [10][11].