Chinese regulators rejected Huya Inc.’s proposal to acquire rival DouYu International Holdings Ltd., killing a deal that would have helped cement Tencent Holdings Ltd.’s lead in video game streaming.
The deal wasn’t approved because it would strengthen Tencent’s dominance in China’s game streaming market, giving it an anti-competitive edge, the State Administration for Market Regulation (SAMR) said in a statement on Saturday. Huya and DouYu together have more than 80% of the market based on active users, they said.
Tencent will abide by the regulators’ decision and comply with all regulatory requirements, the company said in a statement Saturday.