China's State Administration for Market Regulation (SMAR) on Saturday barred the merger of Huya and Douyu, two of the country's largest live streaming operators after a review.
Chinese tech giant Tencent had raised the merger case of Huya and Douyu. However, the merger between Huya and DouYu would give Tencent sole control of the merged entity, further strengthening Tencent's dominance in the game livestreaming market, reported Global Times.
Tencent has separate control of Huya and joint control of DouYu, ranking first and maintaining over 40 percent of the online games market. Huya and DouYu separately have 40 percent and 30 percent share of the game livestreaming market, ranking first and second, Global Times reported citing Xinhua News Agency.
The blocked merger comes shortly after the Chinese Cybersecurity Review Office ordered app stores to remove ride-hailing app Didi Chuxing. Earlier, this week, the regulator announced that it will investigate job recruiting platform Boss Zhipin, and two commercial freight platforms, over national security concerns.
Earlier, on Sunday, the Chinese Cyberspace Administration ordered online mobile app stores to take ride-hailing app Didi Chuxing off their shelves due to "serious violations of law and regulation" in the collection and use of personal information.
The Chinese watchdog said the application severely violated relevant laws and regulations while collecting and abusing user data. The regulator told the ride-hailing company to take concrete measures to fix the loopholes in accordance with the law and national standards.
Liu Dingding, a Beijing-based independent tech analyst said that given the current situation, more Chinese firms that intend to list in the US, would have a second thought amid the country's tightening security on data protection.
Other experts believe that the review is another example of Beijing's crackdown on influential IT giants. Earlier this April, the Chinese government imposed a huge fine on Chinese e-commerce giant Alibaba Group.
Copyright © 2021 aninews.in All rights reserved.