China also blocks tech company Tencent | Financial

The regulator says that the merger of the largest game platforms will disrupt the market. After the merger, Tencent would have a domestic market share for online video game streaming services somewhere between 80% and 90%.

The merger would have resulted in a $5.3 billion company in revenue. According to Beijing, Tencent would have an even more dominant position, which is undesirable for consumer protection, according to the regulator.

In addition, “competition would be eliminated or restricted.”

In recent days, the regulator limited the distribution of apps from Didi, parent company of the taxi app, in two waves. Didi would collect too much personal data from Chinese users and use it for commercial purposes.

Softbank, a major investor in Didi, lost 8% on the stock market in one month.

The Chinese regulator also said on Saturday that any company with data for more than a million users must undergo a “security assessment” before being allowed to market its shares abroad. According to market experts, this will mean a significant contraction of the platform economy with online companies.

According to the regulator, this concerns the protection of data that can be used by foreign companies and governments. This service, the Cyberspace Administration of China (CAC), has posted the rules on its website.

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