U.S. officials are reportedly looking into the stakes Chinese company Tencent has in video game companies.
According to Bloomberg, the Committee on Foreign Investment has sent letters to Epic Games, the makes of “Fortnite,” and Riot Games, creators of the lucrative esports property “League of Legends,” about how they handle Americans’ personal data.
Tencent owns Riot Games and “Clash of Clans”-maker Supercell, and holds a significant stake in Epic Games. The company also owns smaller stakes in other companies including Activision Blizzard and Ubisoft.
Epic Games declined to comment on the report. Riot Games and Tencent could not be immediately reached for comment.
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Along with securing stakes in game companies, Tencent has collaborated with multiple companies to help launch video game properties in China. Last year, Activision Blizzard launched a mobile version of its popular Call of Duty franchise with help from Tencent. They also worked together on “Call of Duty Online” for launch in China.
In 2018, Ubisoft and Tencent announced a deal that would allow the video game publisher to release several of its top properties in China.
Tencent along with other Chinese companies have faced increased scrutiny from the Trump administration over concerns data from US users could be handed over to the Chinese government.
On Friday, the Commerce Department announced it would ban Tencent-owned WeChat as of Sept. 20. It’s also barring new downloads of the popular social app TikTok, which faces a total ban unless it can reach a deal on its U.S. operations.
Follow Brett Molina on Twitter: @brettmolina23.