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Taiwan moves to ban Chinese streaming apps in the country

Taiwan is moving to ban streaming services that are based in China, according to the country’s National Communications Commission. The NCC first published a draft law to the effect on July 15, saying it was doing so to prevent businesses that haven’t acquired a license in accordance with national law – the Act Governing Relations between the People of the Taiwan Area and the Mainland Area – from “illegally providing media services”. CNN Business reported that the bans were a part of a larger effort by the island country against Chinese big tech companies.

According to a machine translation of a statement by Taiwan’s Ministry of Economic Affairs, a final notice to effect the ban will be announced on September 3. Local Taiwanese businesses will no longer be able to strike deals to allow these companies to operate in the country according to the new regulations. iQIYI and Tencent Video will be banned as a result of this law, but an analyst told Nikkei Asia Review that the financial impact to the companies would be limited due to the small size of the Taiwanese market.

iQIYI is under investigation by the US Securities and Exchange Commission after a short seller’s report alleged that the company was misleading shareholders on its revenue. iQIYI is China’s biggest streaming service, and in 2017 signed a deal with Netflix, a company it is frequently compared to, for distributing the latter’s content in China.

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I cover the digital content ecosystem and telecom for MediaNama.

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

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