Beijing’s decision to block Tencent’s Douyu-Huya merger deal marks end of freewheeling Internet era in China

Decision to reject the Douyu-Huya merger, which would have created a video game streaming behemoth worth more than US$10bil, sets a precedent. Analysts say blocked merger may force Tencent to sell off its stake in one of the two streaming companies, given ongoing antitrust regulation risks. — SCMP

The Chinese government had never said no to a merger deal in the country’s technology sector until two weeks ago when the State Administration for Market Regulation (SAMR) blocked Tencent Holdings’ plan to merge Douyu and Huya, two video game livestreaming websites it controls.

Analysts says Beijing’s veto is a clear sign that the Chinese authorities are no longer shy to act on antitrust issues, putting an end to a freewheeling era in which Big Tech companies were able to engage in aggressive merger and acquisition activity to achieve market dominance.