Tencent shuts down its rival to Amazon's Twitch as China's crackdown on tech continues

Key Facts

Hong Kong CNN Business — Tencent is shutting down its game streaming service, the latest retreat by Big Tech in the face of a sweeping crackdown by Chinese regulators that has sharply slowed growth at some of the country’s most powerful internet companies.
In 2020, Tencent planned to sell Penguin Esports to Douyu for $500 million, and then merge Douyu and Huya into a new company that would streamline its shares in the platforms.
The State Administration of Market Regulation said in a statement in July that Douyu and Huya’s merger would strengthen Tencent’s dominance in the video game streaming market, giving the company too much market power and potentially deterring fair competition.
The termination of Penguin Esports came as an unprecedented government crackdown has sharply slowed revenue growth at the country’s most powerful internet companies, pressuring them to lay off employees and look for ways to reduce operating costs.