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China's Watchdog Conducts On-Site Inspection of Video Game Streaming Platform Douyu

Updated: Jan 4

China's internet regulator, the Cyberspace Administration of China (CAC), has ordered an on-site inspection of Douyu International Holdings, one of the world's largest video game live-streaming platforms due to "serious" problems related to pornography on the platform.

Video Game
Credits: Wix

The CAC has instructed its local arm in Hubei province to send a working group to supervise the platform's "rectification" process for a month. Douyu has not yet commented on the matter. The Nasdaq-listed company's shares fell by as much as 15% during pre-market trading on Monday.


China has implemented strict rules to clean up content and combat youth gaming addiction, leading to an intense regulatory crackdown on the video gaming industry. However, regulatory scrutiny has eased in recent months. China's National Press and Publication Administration resumes monthly approvals of new video games, including those developed by Big Tech firms such as Tencent, ByteDance and Alibaba Group Holding.

Chinese Flag
Credits: REUTERS/Thomas Peter

On-site inspections by the CAC remain rare, with the last inspection announced in March 2022. Despite easing enforcement, the regulator has maintained tight control on online content and shut down 4,208 websites while summoning 2,203 website operators for meetings in the first quarter of 2023.


Douyu, majority-owned by Tencent, had previously sought to merge with Huya in 2020, but China's antitrust regulator blocked the move. Following the failed merger, Tencent planned to take Douyu private.

 
  • China's internet regulator, the CAC, has conducted an on-site inspection of Douyu International Holdings due to "serious" problems related to pornography on the platform

  • Regulatory scrutiny of the video gaming industry has eased in recent months

  • On-site inspections by the CAC remain rare, with the last inspection announced in March 2022

  • Douyu had previously sought to merge with Huya in 2020 but the move was blocked by China's antitrust regulator

  • Tencent, the majority owner of Douyu and Huya, planned to take Douyu private after the failed merger.

Source: SCMP

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