The Committee on Foreign Investment in the U.S. (Cfius) began a detailed exploration of the security protocols and personal data possessed by Tencent's sub-ordinaries in the country. The world's leading gaming organization, Chinese Tencent Holding Ltd., owns a few gaming activities in America, which warns Donald Trump and can help him in the presidential campaign.
Being under the control of Donald Trump, Cfius asked all the sub-ordinaries of Chinese esports corporation Tencent to present its security protocols and related data about the US clients. Among the most notable names are Riot Games, which is under the full control of a Chinese giant, and Epic, which has sold 40% of its shares to Tencent.
According to insiders, this measure can be related to Trump's reelection attempts as the conflict with China can be the cornerstone to rely on. If Cfius forbids Tencent's presence on the US market, it can lead to hundreds of millions of losses. Riot Games was bought for more than $400M in 2015, while Tencent also paid $330M for 40% of Epic's shares in 2012. Unlikely it will be the conflict point between the US and China, but some governmental restrictions concerning cybersport can be accepted in response.
This not the first problem for Tencent on the international esports market
According to the latest esports news, Chinese Tencent will suffer a drastic revenue downfall due to India's limitations in the gaming sector. Indian rulers decided to ban mobile applications with Chinese origin as they collected too much personal data and could threaten the country's integrity.
Tencent possesses about 50% of the gaming market production and distribution in China, and escaping from India and the USA will lead to serious income cuts. The cybersport giant has already felt the annual 36% revenue decrease, which even has led to an almost 3% stock shares fall.
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