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Business trends

China's censorship casts shadow over internet businesses

Domestic companies adapt to scrutiny, but crackdown adds trouble to Google's entry

A child plays the game "Honor of Kings" by Tencent in Dezhou, China. The government is tightening control over the internet, a development that has the industry worried.
A child in China plays the game "Honor of Kings" by Tencent. The government is tightening control over the internet, a development that has the industry worried.   © Reuters

Beijing's increasing intervention in the internet sector has raised pressure on Chinese businesses ranging from game producers to live-streaming sites, a chilling effect that also may hamper attempts by Facebook and Google to enter the world's largest internet market.

Hong Kong-listed Tencent Holdings reported its first decline in quarterly profit in nearly 13 years on Wednesday, as state regulators failed to grant approval for in-game purchases involving the company's new hit video game, "PlayerUnknown's Battlegrounds Mobile." Online games contribute roughly 40% of Tencent's revenue.

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