28-03-2023
News: MIC Takes Bold Action Against Illegal Games

At the conference on implementing payment channel management solutions for online games on March 23rd, Deputy Minister of Information and Communications Nguyen Thanh Lam stated, “The perspective of the Ministry of Information and Communications on handling unauthorized games is consistent, decisive, and focused on finding solutions for enforcement.”

Decisive Action Against Illegal Games

Deputy Minister Nguyen Thanh Lam speaks at the conference’s conclusion

The announcement of the list of licensed and unlicensed games:

The MIC has stated that it will regularly update and provide information on the list of licensed and unlicensed games (primarily those with a large number of players) to payment intermediaries for cross-checking and non-payment, as well as payment connections to unlicensed games.

The ministry is also coordinating with the Ministry of Public Security and relevant units to strictly handle violations related to payment, promotion, gambling, and exploitation of games for reward exchange. The ministry is directing domestic game producers and publishers to protect game copyrights and review and remove games with counterfeit and unauthorized versions.

The MIC also requests that organizations and service providers of payment intermediaries fully comply with relevant payment regulations and specialized laws when connecting and paying for game services.

At the same time, measures will be taken to prevent payment connections and payments for unlicensed games through payment systems of payment intermediaries, or upon receipt of requests from state management agencies. If payments are made through IAP (In-App Purchase), Apple and Google must provide full transaction information to implement measures to disconnect or block payments for unlicensed games.

The MIC will also coordinate with the Ministry of Public Security and the State Bank of Vietnam to supervise, inspect, and strictly handle payment intermediaries that continue to make payments for unlicensed games.

Specifically, the MIC will propose that the State Bank of Vietnam take measures to prevent payment intermediaries from making payments for games, and will request that Apple and Google not cooperate with payment intermediaries to make payments for games on these two app stores. The ministry will also ask telecommunications companies to block access to unauthorized payment intermediary gateways and to block access to websites/applications that provide games that violate Vietnamese laws.

The government is losing a significant amount of tax revenue due to illegal gaming

According to Le Quang Tu Do, Director of the Department of Broadcasting, Television, and Electronic Information, there has been inequality between domestic and foreign businesses during the promotion of game development.

Specifically, domestic businesses are subject to many legal regulations, while cross-border providers disregard them, issuing unlicensed games, processing payments through intermediaries, and avoiding tax obligations.

Decisive Action Against Illegal Games

Mr. Do provided specific information: The estimated revenue in the gaming industry in Vietnam in 2022 is over 500 million USD, and unauthorized games account for 30%, mainly supplied across borders into Vietnam via Google Play and Apple Store.

“Why can foreign gaming companies do that? It’s because payment channels for unauthorized games all have payments through intermediaries… One side has too many advantages, the other side faces many restrictions, and the game is definitely not fair. The government also loses a lot of tax revenue,” Mr. Do evaluated.

“There are currently over 220 gaming companies licensed in Vietnam, but only 30 units are truly active in supplying games to the market. The rest have collapsed because they cannot compete with foreign games,” Mr. Do said.

Since 2019, at the request of the Department of Broadcasting, Television, and Electronic Information, Google has removed 294 gambling, violent, and unauthorized games, and Apple has removed 90 gambling, prize exchange, and unauthorized games; they have also shut down 543 websites that show signs of providing unauthorized games, gambling, and prize exchange.

However, Mr. Le Quang Tu Do admitted that these efforts are still not enough and still have limitations. The payment for games today is too easy through many forms, intermediaries do not actively check, and even cannot check for some reasons, leading to violations of the law by loading money for unauthorized games, gambling… Users also lack awareness in the process of choosing and using gaming services and applications.

Source: Mic.gov.vn

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