Tencent has filed a lawsuit against a company running an app that grabs WeChat red packets automatically, as well as the firm that runs the platform Wandoujia, where the app is hosted, the Beijing Intellectual Property Court disclosed on Wednesday.

Tencent is asking the court to order the company to cease operation of the app, and for Wandoujia to remove it from public use.

The tech giant is also seeking RMB 50 million (USD 7.5 million) in compensation from these two companies, which the court did not name.

Tencent said that the most interesting feature of WeChat red packets is that users in a group race to “grab” the cash, which triggers communications on the app.

The app developed by the first company that Tencent is suing, however, would allow WeChat’s 60 million users to grab a red packet without logging in, thereby limiting user activity in WeChat’s network.

In addition, Tencent alleged that the software illegally monitors WeChat users’ chatting records and how funds circulate between wallets.

Contact the writer at jingli@kr-asia.com