US Markets
ZM

Zoom to shift to 'partner-only' model in China, suspend direct sales

Credit: REUTERS/DADO RUVIC

Zoom Video Communications will shift to a partner-only model in mainland China from Aug. 23, suspending direct sales to all customers in the region, the company said on Monday.

Adds background, context

SHANGHAI, Aug 3 (Reuters) - Zoom Video Communications ZM.O will shift to a partner-only model in mainland China from Aug. 23, suspending direct sales to all customers in the region, the company said on Monday.

Zoom customers in China received an email on Monday informing them of the change, and telling them it would provide users with "better local support."

In the email, seen by Reuters, Zoom listed Bizconf Communications, Suiri Zhumu Video Conference, and Systec Umeet - as partners that can offer its commercial service to customers in China.

Zoom has been distancing itself from its China operations, which had come under the scrutiny of human rights activists and privacy advocates.

The company announced in May that it would suspend new free user registrations in China and limit new user registrations to enterprise customers who sign up through authorized sales representatives.

But in June, Zoom came under fire when it was revealed it had shut an account belonging to a group of U.S.-based Chinese activists who were attending an online video group chat to memorialize the Tiananmen Square massacre.

In a blog post, Zoom confirmed it had temporarily shut down the accounts due to request from China's government. It said that it had re-instated the terminated accounts and "will have a new process for handling similar situations."

Months earlier, security researchers discovered that Zoom re-routed some calls through its servers in China, even if those calls were placed outside China.

The company said that the re-routing took place in "extremely lmited circumstances" and that it took its mainland China data centers off of an approved list of backups for users outside of China.

(Reporting by Josh Horwitz and Brenda Goh in Shanghai, editing by Simon Cameron-Moore)

((Josh.Horwitz@thomsonreuters.com; +86 21 20830007;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

ZM

Latest Markets Videos

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More