The Investment Commission yesterday rejected an application by China’s largest video-on-demand provider, iQiyi (愛奇藝), to set up a subsidiary in Taiwan, saying regulations forbid Chinese online video-streaming service providers from operating in the nation.
“iQiyi said in its application that it plans to establish an information service company, but it actually wanted to operate an over-the-top [OTT] service for broadcasting entertainment content, which is not allowed in Taiwan,” commission Executive Secretary Emile Chang (張銘斌) said by telephone.
The firm, a subsidiary of Internet search engine Baidu Inc (百度), in August submitted an application to invest NT$1 million (US$31,444) to set up a subsidiary as an “electronic information services provider,” the commission said.
The commission’s decision was made in accordance with the Ministry of Culture and the Mainland Affairs Council’s opinions on the case, Chang said.
Minister of Culture Cheng Li-chun (鄭麗君) last month said he was against allowing iQiyi to form a subsidiary in Taiwan, saying that the government has to protect its right to broadcast Taiwanese cultural content.
That China has yet to allow Taiwan’s OTT providers to operate in China was also taken into consideration in iQiyi’s case, Cheng said.
However, in March iQiyi launched online video-streaming services in Taiwan via a local content distributor, OTT Entertainment Ltd (歐銻銻).
Chang said iQiyi is allowed to provide services via a local company, which means the firm can indirectly operate in Taiwan, despite the commission’s disapproval.
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