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Zoom Video Communications, which soared in popularity during the COVID-19 pandemic lockdown, disabled the accounts of Chinese dissidents in the US after they used the videoconferencing service to commemorate the 1989 student massacre at Tiananmen Square.
The session was organized and hosted in the US but included people dialing in from China, according to the Financial Times.
Nearly a third of the workers at NASDAQ-listed Zoom, are based in China, where it does its R&D. It has servers in China.
Zoom pulled the plug on a number of accounts just as the June 4 remembrance of the Tiananmen Square massacre began.
The FT noted that the shutdown would increase fears about Zoom's security and how it responds to governmental censorship requests.
Zoom said as a global company it must comply with various laws in the countries where it operates.
It regrets that a "few recent meetings with participants both inside and outside of China were negatively impacted and important conversations were disrupted," according to its statement.
Zoom said it takes limited action to comply with laws and continuously reviews its process. The US accounts have been reactivated.
The company's first-quarter revenues soared 169 percent to $328M as the COVID-19 crisis drove demand for distributed, face-to-face interactions and collaboration using Zoom's video conferencing.
Net income surged to $27M from $198K a year ago.
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