China's SAMR Takes Aggressive Approach To Technology

On July 10, 2021, the State Administration of Market Regulation (SAMR) of the People's Republic of China (China or the PRC) announced that it had denied the merger of online-game streaming companies Huya Company and Douyu International Holdings Co., Ltd., which are first and second in market share for online-game streaming in China. Tencent, which is already the market leader for online-game operations, owns Huya and has joint control over Duoyu. The merger denial by the SAMR illustrates the PRC government's increased scrutiny of China's tech giants. 

The merger was blocked per Article 28 of the PRC Anti-Monopoly Law (AML) and Article 35 of the Interim Provisions on the Review of Concentration of Undertakings (the Interim Provisions). AML Article 28 allows the SAMR to prohibit a concentration of undertakings where the concentration "will or may eliminate or restrict competition," unless the company proves that the benefit of the concentration exceeds the