US Treasury Department Scrutinizing Riot and Epic over Tencent Connections

Following their actions against TikTok, word is the Trump administration is now scrutinizing companies with backing from Chinese conglomerate Tencent, including Epic Games and Riot. Bloomberg reports the details:
The Trump administration has asked gaming companies to provide information about their data-security protocols involving Chinese technology giant Tencent Holdings Ltd., people familiar with the matter said.

The Committee on Foreign Investment in the U.S., which is chaired by the Treasury Department, has sent letters to companies, including Epic Games Inc., Riot Games and others, to inquire about their security protocols in handling Americans’ personal data, said the people, who asked not to be named because the discussions are private.

Tencent, the world’s largest gaming company, owns Los Angeles-based Riot and has a 40% stake in Epic, which is the maker of the popular video game Fortnite. Representatives for the companies declined to comment or didn’t immediately respond. The Treasury Department declined to comment.

The inquiry builds on the Trump administration’s heightened scrutiny of Chinese companies and their ties to U.S. firms -- a source of fresh tension with the Beijing government and a pillar of President Donald Trump’s reelection campaign. Tencent’s American Depositary Receipts fell 2.4% to $66.66 on the news.