China antitrust regulator blocks Tencent gaming site merger | Malay Mail

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China antitrust regulator blocks Tencent gaming site merger | Malay Mail
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BEIJING, July 10 — China’s financial regulator has blocked a merger of the nation’s two largest video game live-streaming sites planned by tech giant Tencent over antitrust concerns, it said today. Beijing has launched a major crackdown on the biggest players in its tech sector after years of...

BEIJING, July 10 — China’s financial regulator has blocked a merger of the nation’s two largest video game live-streaming sites planned by tech giant Tencent over antitrust concerns, it said today.

Analysts have estimated the planned merger of live streaming services Huya and Douyu could have brought the combined platforms’ domestic market share to between 80 to 90 per cent. “This has the effect of eliminating or restricting competition, is not conducive to fair market competition ... and is not conducive to the healthy and sustainable development of the online gaming and video game livestreaming market.”

Plans for the deal were initially announced by Tencent last October, but SAMR said it would undertake an antitrust review into the merger in December.

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