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AMENDMENT RELATED TO ONLINE GAMING

3rd January, 2023

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About

  • The Union Ministry of Electronics and Information Technology proposed an amendment to bring online gaming under the regulations of the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021.
    • The proposal is released for public consultation.
  • The proposed model is similar to the rules in place for digital news sites and streaming services under the IT Rules, 2021.
  • The minister highlighted that the proposed framework will;
    • Boost the legitimate domestic online gaming industry.
    • Ensure greater transparency.
    • Promote Consumer protection and investor confidence.
  • The All India Gaming Federation (AIGF) stated that it would reduce the State-wise regulatory fragmentation that was a big challenge for the industry.

Online Gaming Market in India

  • A 2019 survey by the U.S.-based Limelight Networks found that India had the second-largest number of gamers after South Korea.
  • The revenue of the Indian mobile gaming industry is expected to exceed $1.5 billion in 2022 and is estimated to reach $5 billion in 2025.
  • The industry in the country grew at a CAGR of 38% between 2017-2020, as opposed to 8% in China and 10% in the US.
  • It is expected to grow at a CAGR of 15% to reach Rs 153 billion in revenue by 2024. India’s percentage of new paying users (NPUs) in gaming has been the fastest growing in the world for two consecutive years, at 40% in 2020 and reaching 50% in 2021.
  • According to a report by the Federation of Indian Chambers of Commerce & Industry (FICCI), transaction-based games’ revenues grew 26% in India, with the number of paying gamers increasing by 17% from 80 million in 2020 to 95 million in 2021. 

About Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021

  • The Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, was notified by the Central government on February 25, 2021, relates to digital news publishers, including websites, portals and YouTube news channels, and Over The Top (OTT) platforms, which stream online contents such as web series and films.
  • It is jointly administered by the Ministry of Electronics and IT, and the Ministry of Information and Broadcasting.
  • The Rules provide for a code of ethics to be followed by digital news publishers and OTT platforms; A three-tier grievance redress mechanism, which includes:
    • Self-regulation by publishers at the first level
    • Self-regulation by Self-regulating bodies of the publishers
    • An oversight mechanism by the Central government

Key Features of the Rules

  • Social media intermediaries, with registered users in India above a notified threshold, have been classified as significant social media intermediaries.
    • They are required to appoint certain personnel for compliance, identification of the first originator of the information on its platform, and identify certain types of content.
    • They need to appoint a Nodal Contact Person for 24x7 coordination with law enforcement agencies. Such a person shall be a resident of India.
    • Appoint a Resident Grievance Officer who shall perform the functions mentioned under the Grievance Redressal Mechanism. Such a person shall be a resident of India.
    • Publish a monthly compliance report mentioning the details of complaints received and action taken on the complaints.
  • The Rules prescribe a framework for the regulation of content by online publishers of news and current affairs content and audio-visual content.
  • A 3-tier Grievance Redressal Mechanism: Social media intermediaries shall appoint a Grievance Officer to deal with complaints and share the name and contact details of such officers.
    • The grievance officer shall acknowledge the complaint within twenty-four hours and resolve it within 15 days from its receipt.
  • Ensuring Online Safety and Dignity of Users, Especially Women Users: Intermediaries shall remove or disable access within 24 hours of receipt of complaints of contents that expose the privacy of individuals.
    • Such a complaint can be filed either by the individual or by any other person on his/her behalf.
  • Voluntary User Verification Mechanism: Users who wish to verify their accounts voluntarily shall be provided with an appropriate mechanism to verify their accounts and provided with a demonstrable and visible mark of verification.
  • Giving Users An Opportunity to Be Heard: Users must be provided with an adequate and reasonable opportunity to dispute the action taken by the intermediary.
  • Removal of Unlawful Information: An intermediary upon receiving actual knowledge should not host or publish any information which is prohibited under any law in relation to the interest of the sovereignty and integrity of India, public order, friendly relations with foreign countries etc.
  • This Code of Ethics prescribes the guidelines to be followed by OTT platforms and online news and digital media entities.
  • Self-Classification of Content: The OTT platforms would be required to self-classify the content into five age-based categories; U (Universal), U/A 7+, U/A 13+, U/A 16+, and A (Adult).

Must Read: https://www.iasgyan.in/daily-current-affairs/nodal-ministry-for-online-gaming

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