Beijing bans merger of Tencent gaming outfits Huya and DouYu, to prevent a monopoly

Want to know what did get approval? Tencent’s bring-it-home acquisition of search engine Sogou

Chinese regulators have refused to approve the merger of two Chinese game streaming services, citing the potential for creating a monopoly in the industry for the part-owner of both companies — tech giant Tencent.

According to a State Administration of Market Supervision (SAMR) statement released Saturday, the Chinese antitrust watchdog conducted a review of the planned merger of Huya Company and DouYu International and decided it shouldn't happen.

Tencent currently holds sole control over Huya and joint control over DouYu. DouYu and Huya jointly control more than 70 per cent of of China’s gaming market.

SAMR fears that a merger would give Tencent a dominant position in the game-streaming market, leaving the web giant in a position to exercise closed-loop management of upstream and downstream markets.

SAMR said the organization rejected a Tencent proposal to add restrictive conditions to the merger deal because it didn’t effectively address antitrust concerns.

Huya and DouYu did what Chinese businesses do when the government complicates their lives: offer thanks and move on. Statements from Huya and DouYu state the companies “fully respect and will abide by the SAMR decision”.

Although Chinese regulators have been quite active lately blocking overseas IPOs, banning apps over data security concerns, and fining tech companies for not offering enough transparency in their mergers and acquisitions, this is the first time Beijing has blocked a merger of tech companies to prevent a monopoly.

SAMR threw Tencent a bone on Tuesday, unleashing the tech giant to buy out Sogou Inc., China’s third most popular search engine, for US$3.5 billion.

The deal effectively rehomes Sogou to China, as it is listed on the New York Stock Exchange. Beijing has cooled on its tech giants listing offshore, on grounds that it could see user data cross borders. ®

Similar topics

Broader topics

Narrower topics

Other stories you might like

  • Running Windows 10? Microsoft is preparing to fire up the update engines

    Winter Windows Is Coming

    It's coming. Microsoft is preparing to start shoveling the latest version of Windows 10 down the throats of refuseniks still clinging to older incarnations.

    The Windows Update team gave the heads-up through its Twitter orifice last week. Windows 10 2004 was already on its last gasp, have had support terminated in December. 20H2, on the other hand, should be good to go until May this year.

    Continue reading
  • Throw away your Ethernet cables* because MediaTek says Wi-Fi 7 will replace them

    *Don't do this

    MediaTek claims to have given the world's first live demo of Wi-Fi 7, and said that the upcoming wireless technology will be able to challenge wired Ethernet for high-bandwidth applications, once available.

    The fabless Taiwanese chip firm said it is currently showcasing two Wi-Fi 7 demos to key customers and industry collaborators, in order to demonstrate the technology's super-fast speeds and low latency transmission.

    Based on the IEEE 802.11be standard, the draft version of which was published last year, Wi-Fi 7 is expected to provide speeds several times faster than Wi-Fi 6 kit, offering connections of at least 30Gbps and possibly up to 40Gbps.

    Continue reading
  • Windows box won't boot? SystemRescue 9 may help

    An ISO image you can burn or drop onto a USB key

    The latest version of an old friend of the jobbing support bod has delivered a new kernel to help with fixing Microsoft's finest.

    It used to be called the System Rescue CD, but who uses CDs any more? Enter SystemRescue, an ISO image that you can burn, or just drop onto your Ventoy USB key, and which may help you to fix a borked Windows box. Or a borked Linux box, come to that.

    SystemRescue 9 includes Linux kernel 5.15 and a minimal Xfce 4.16 desktop (which isn't loaded by default). There is a modest selection of GUI tools: Firefox, VNC and RDP clients and servers, and various connectivity tools – SSH, FTP, IRC. There's also some security-related stuff such as Yubikey setup, KeePass, token management, and so on. The main course is a bunch of the usual Linux tools for partitioning, formatting, copying, and imaging disks. You can check SMART status, mount LVM volumes, rsync files, and other handy stuff.

    Continue reading

Biting the hand that feeds IT © 1998–2022