The Chinese streaming firm is alleging that SM has abused its dominant market position in a dispute over music licensing. Adding complexity, Tencent Music Entertainment (TME) – NetEase’s primary domestic music streaming competitor – became SM Entertainment’s second-largest shareholder in May. Details: Court filings reveal that NetEase Cloud Music has brought a suit against SM Entertainment in the Hangzhou Intermediate People’s Court. In 2019, however, SM aligned with Tencent Music Entertainment, resulting in the removal of SM songs from NetEase’s platform and sparking widespread fan complaints. This dynamic shifted in 2021, when Chinese regulators ended exclusive music licensing, giving NetEase a pathway to renegotiate with SM.