(Yicai Global) Feb. 13 -- Tech titans Tencent Holdings Ltd. and NetEase Inc. have cast aside their differences to pen a music licensing deal which could be the basis for a long-term relationship as regulators call for a more level playing field in the streaming sector.

The National Copyright Administration of China facilitated the agreement, news outlet TechWeb reported. It will see the two firms sharing more than 99 percent of their music libraries and help pull Hangzhou-based NetEase's streaming app out of the mud.

Shenzhen-based Tencent sued NetEase Cloud Music twice in August, saying it streamed music to which the complainant held exclusive rights. The suits led to NetEase taking down more than 200 songs and to rub salt in the wound, Tencent struck a licensing deal with rival Alibaba Group Holding Ltd. the following month.

Tencent dominates China's music streaming market, holding the top three apps by user numbers: Kugou Music, QQ Music and Kuwo Music, and commanding a 90 percent share of related copyrights. NetEase Cloud Music and Alibaba's Xiami Music rank in fourth and fifth.

The NCAC intervened in a dispute between the three leviathans in September, banning cutthroat competition that led to the companies attempting to monopolize the sector and looking to make music more accessible across each of their platforms.