We would like to ensure that you are still receiving content that you find useful – please confirm that you would like to continue to receive ILO newsletters.
03 July 2020
On 17 June 2020 the National Communications Commission (NCC) issued a notice of alert to all licence holders (including terrestrial TV channels, radio stations, satellite TV channels, cable TV channels and telecoms operators) which demands that they stop carrying ads, promotions or sponsorship for Chinese over-the-top (OTT) TV services, specifically We TV and Iqiyi, and requires compliance with bans on Chinese OTT TV services under the governing law administered by the Mainland Affairs Council.
While the official OTT TV regulation has yet to be clarified (for more detail please see "NCC plans for enactment of OTT regulation", "New measures to regulate OTT service providers", and "Cable TV operators battle media on demand"), the NCC and relevant government agencies reached a consensus in May 2020 on measures to be taken on Chinese OTT TV service providers which circumvent existing rules set out in relation to the border control of services originating from China.
A survey commissioned by the NCC in July 2019 revealed that 45.1% of Taiwanese TV viewers interviewed had used OTT TV services, which outnumbered the 30.8% in 2017 and 37.6% in 2018. Paid subscription services accounted for 20% of the above users. Another survey carried out by the private sector in December 2019 suggested that Iqiyi alone enjoyed a 41% market share next to YouTube. This partly explains the NCC's recent follow up and responds to complaints filed by licensed pay TV operators.
Non-compliance could result in an administrative fine of between NT$100,000 and NT$500,000 under Article 89 of the Act Governing Relations between the People of Taiwan and Mainland China plus another fine of between NT$200,000 and NT$2 million under Article 55 of the Satellite Broadcasting Act.
For further information on this topic please contact Arthur Shay at Shay & Partners by telephone (+886 2 8773 3600) or email (email@example.com). The Shay & Partners website can be accessed at www.elitelaw.com.
The materials contained on this website are for general information purposes only and are subject to the disclaimer.
ILO is a premium online legal update service for major companies and law firms worldwide. In-house corporate counsel and other users of legal services, as well as law firm partners, qualify for a free subscription.