The new IT Rules, 2023 regulate emerging tech platforms like Online Gaming and Social Media intermediaries.
Online Games: The term “online game” has now been defined. Additionally, “online gaming intermediary” will now be governed by the IT Rules 2021. Significantly online gaming intermediaries must now follow up with additional due diligence and the online real money used in games has to be verified by MeITY appointed self-regulatory bodies.
Fact Checking Units: The 2023 amendment grants the union government the authority to remove any online content pertaining to its business that it deems to be false or misleading. Many digital rights groups have called this out as censorship and violation of freedom of expression. Furthermore, the terms “fake”, “false”, and “misleading” have not been defined.
- Do they create more concerns for the future than resolving the present challenges?
- how can the power of ‘data’ and diversity of ‘choices’ be a friend not a foe…?
- How does it impact Freedom of expression – And potential censorship ?
The Quest is to ponder on how can the gaming ecosystem get ready for the opportunities and challenges posed by the current regulatory blindness:
- According to this Games Law Wrap article on Nishith Desai Associates website, the introduction of the IT Rules 2023 is a positive step forward, they do not supersede the anti-gambling laws specific to each state. Consequently, state-level actions may persist.
- Whether it’s about the lack of consensus on what are skill games and what are chance games, the need to impose a sin tax as a measure to discourage real money Gaming / wagering, or whether self-regulation will work: the jury is not out on how the gaming regulatory maze will change the game?
- Medianama’s analysis on how the gaming rules will impact the industry and the repercussions of fact checking policies as well, their key take aways can be read here: Impact Of India’s Online Gaming Rules And Fact-Checking Policies.
- We also found some clues and reasons why the government may have expanded its regulatory reach by introducing the rules with the authority to label and remove online content related to its business, in an insightful piece by Medianama – more on that can be found here.
As per our analysis of the gaming regulation conundrum, what we need to question the following from the ongoing controversies around social media and gaming –
- should the “right to recreation” and “information” be compromised due to lack of effective consensus?
- How can a nuanced behavioural approach create a long-lasting impact on consumer behaviour?
- Do we see a win-win solution if the stakeholders work together to enable the gaming ecosystem to flourish?
In conclusion, the ongoing controversies and discussions will persist until we acknowledge the prominent issue at hand, or recognize it as a significant wake-up call regarding the crucial role of corporate governance especially with new business models emerging in the technology sector baffling regulatory authorities.
