Companies or individuals that help Chinese over-the-top (OTT) operator iQiyi solicit commercials from Taiwan could be fined up to NT$5 million (US$180,532) for contravening the Act Governing Relations Between the People of the Taiwan Area and the Mainland Area (臺灣地區與大陸地區人民關係條例), the National Communications Commission (NCC) said yesterday.
The Chinese operator was forced to close its office in Taiwan after the Ministry of Economic Affairs in 2020 amended the “List of the Prohibited Commercial Engagement Practices in the Taiwan Area,” which bars companies or people from selling services of Chinese OTT operators or acting as their agents in Taiwan.
It also clearly states that OTT services are not open to funding from China.
Photo: Yang Mien-chieh, Taipei Times
Despite the ban, several local advertising firms have reportedly continued to place commercials on iQiyi and other Chinese streaming platforms.
The commission would consult the Act Governing Relations between the People of the Taiwan Area and the Mainland Area and the List of the Prohibited Commercial Engagement Practices in the Taiwan Area to determine if an intermediary service contravenes government regulations, NCC Vice Chairman Wong Po-tsung (翁柏宗) said.
“If the service involves some ‘gray areas’ that are not clearly stated in the regulations, we will see if a company or an individual sets up a local office on behalf of a Chinese OTT TV operator or assists it in offering a service in Taiwan. If so, they are breaking the law,” Wong said.
Companies or individuals that are ascertained to have contravened the regulations could be fined NT$50,000 to NT$5 million, as per Article 86 of the act, he said.
The article also states that failure to terminate or rectify the situation by the expiration of the aforementioned time limit can be punished with consecutive fines, the NCC spokesman added.
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