Banned Chinese App Club Factory Stops Payments To Sellers
India 59 Chinese apps including UC Web and Club Factory citing security threats after LAC face-off between troops in Ladakh's Galwan valley last month banned. UC Web, which operates UC Browser, Vmate short video app, on July 15, told its employees about job terminations. UC Web had 130 million monthly active users in India and employed almost 100 employees here. Club Factory invoked “force majeure” clause freeing itself from payment obligations
New Delhi: Alibaba Group Holding Ltd which owns UC Web is cutting jobs in India after banned 59 Chinese apps including UC Browser.
Last month the Ministry of Electronics and Information Technology (MeITY) issued an order stating the apps banned by India "are prejudicial to sovereignty and integrity of India, defence of India, the security of the state and public order”.
"This move will safeguard the interests of crores of Indian mobile and internet users. This decision is a targeted move to ensure safety and sovereignty of Indian cyberspace," the order added.
The action followed after 20 Indian soldiers were killed in hand-to-hand combat with People’s Liberation Army (PLA) soldiers along the Line of Actual Control (LAC) in Ladakh’s Galwan valley.
UC Web, which operates UC Browser, Vmate short video app, on July 15, told its employees about job cuts. Reports say UC Web will be shut down its India operations.
The company which entered India almost a decade ago, employs almost 100 employees in its Gurgaon office, has not issued a formal statement about job cuts or its India operations. However, the company in an internal communication to the employees said that it was not able to continue operations due to “ongoing issues, leading to uncertainty and business losses. We are shutting down India operations”.
UC Web which had 130 million monthly active users in India and had employees on direct Alibaba payrolls and third-party vendors.
Yet another banned Chinese e-commerce app Club Factory told its Indian sellers that could not make good on payment obligations invoking “force majeure” clause.
"We hereby wish to inform that all settlements with sellers on the CF app and website are hereby being put on hold until the ban of the CF app and website is lifted," the letter by Club Factory to its sellers read.
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