wordpress blog stats
Connect with us

Hi, what are you looking for?

, ,

Watch: Why new FDI rules for digital media companies are regressive for the internet space in India

On August 28, the government of India decided to “permit” 26% FDI under the government route in digital media companies that upload or stream news and current affairs. Nikhil Pahwa, MediaNama’s founder and editor, however found it "not clarification" or "an opening up", but "a restriction on funding". "It is regressive for the internet space in India," he said. Earlier, he clarified, digital media companies could raise funding without any restrictions. Thus, effectively, FDI has gone down from 100% to 26% - meaning that what is being passed of as “permission” is actually a restriction and a cap. Here are the key issues around this move: It will increase red tape: Pahwa said that this funding can only be approved by the government, and thus, essentially an increase in red tape. Under earlier guidelines, restriction on raising FDI were placed only on sectors that were namechecked; every other sector was under an automatic route. “If you’re an e-commerce marketplace, you can raise funding; if you are a software service, you can raise funding, but if you’re an online media company, then there is a restriction,” he explained. https://www.youtube.com/watch?v=EInjF1lZozg So, is the government looking to increase control over digital media? Yes. Pahwa explained that under the new guidelines, the government talks of 49% FDI for DTH and then talks about 26% FDI in digital in line with print media. “So, what’s the point of mentioning DTH?” he asked. He highlighted that today, when more people are consuming media and the economy is opening…

Please subscribe/login to read the full story.
Written By

Free Reads

News

The service from the tie-up will initally be launched at Bengaluru, Bhubaneswar, Vijayawada and Visakhapatnam railway stations

News

The Minister's response came after an X user posted answers generated by Gemini regarding Prime Minister Narendra Modi.

News

Vaishnaw said that in the next five years, there will be significant disruptions in the way telecom technology operates.

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

Views

News

Notably, Indus Appstore will allow app developers to use third-party billing systems for in-app billing without having to pay any commission to Indus, a...

News

The existing commission-based model, which companies like Uber and Ola have used for a long time and still stick to, has received criticism from...

News

Factors like Indus not charging developers any commission for in-app payments and antitrust orders issued by India's competition regulator against Google could contribute to...

News

Is open-sourcing of AI, and the use cases that come with it, a good starting point to discuss the responsibility and liability of AI?...

News

RBI Deputy Governor Rabi Shankar called for self-regulation in the fintech sector, but here's why we disagree with his stance.

You May Also Like

News

Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...

Advert

135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...

News

By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

News

Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Name:*
Your email address:*
*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ