- Video conferencing app Zoom Video Communications Inc (NASDAQ: ZM) has decided to halt direct sales in China. These are the details.
Video conferencing app Zoom Video Communications Inc (NASDAQ: ZM) has decided to halt direct sales in China. Going forward, Zoom is going to sell its products in China through local authorized partners from August 23 onwards.
“Our go-to-market model in Mainland China has included direct sales, online subscription, and sales through partners. We are now shifting to a partner-only model with Zoom technology embedded in partner offerings, which will provide better local support to users,” said a Zoom spokesperson in a statement.
Founded by former Cisco engineer Eric Yuan, Zoom has been facing scrutiny from government officials about whether private data is shared with the Chinese government. And Zoom has been criticized for not offering full end-to-end encryption of its video conferencing service.
The user growth and stock price of Zoom have surged during the COVID-19 pandemic as millions of people are using the service every day for educational, corporate, and personal purposes.
Zoom users in mainland China will still be able to join meetings.
