China's antitrust regulator has decided to formally block Tencent Holdings Ltd's plan to merge the country's two largest video game streaming sites, Huya and DouYu, according to Reuters.
According to Arab Net, two of the sources said that Tencent had failed to come up with a way to meet the State Administration of Market Regulation (SAMR) requirements regarding the waiver of exclusive rights.
The internet giant recently withdrew its merger application submitted to antitrust review after SAMR told the company that it could not complete the merger review within 180 days since its first submission.
Tencent is China's number one video game and social media company.
Tencent first announced plans to merge Huya and DouYu last year into a partnership designed to streamline its stakes in companies, which data firm MobTech estimates has 80% of the market, valued at more than $3 billion and is growing rapidly.
Huya and DouYu were ranked first and second, respectively, as the most popular video game streaming sites in China, where users flock to watch esports tournaments and follow professional players.
Tencent is Huya's largest shareholder with 36.9%, and also owns more than a third of DouYu, with both companies listed in the United States, and a combined market value of $6 billion.
Reuters reported in March, citing people familiar with the matter, that Tencent had to make concessions in a plan to merge Huya and DouYu in order to resolve antitrust concerns.
