Is this overreaction…I would venture to say yes, but a desperately needed one to clean up the industry in the long run. If some genuine companies fall by the wayside because of this, so be it.
Anyway, the latest news: China’s telecom regulator, the Ministry of Information Industry, has accused 102 companies in the country’s mobile content an applications industry of illegal behavior…It did not specify what the illegal practices were, but in the past, such campaigns have been directed at controversial content and services such as pornography and gambling, as well as spam.
“If the companies have not corrected themselves within a set period, they will have their licenses revoked,” the MII statement said, without providing specifics on the time period.
The list includes units of software maker Kingsoft and Shanghai Sifang Information Technology.
One analyst predicted that the policy changes could see the industry contract by 30 percent or more.
Related:
— Monstermob Shares Drop By Half After Chinese Warnings; Higginson’s Revenge
— Same For Linktone & Others; Says Billing Rules Will Hurt
— China Mobile Fee Change To Hurt Content Providers
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