Large over-the-top (OTT) television operators would be required to register with the government and subject to other special obligations under a new draft act regulating Internet audiovisual services (網際網路視聽服務法草案), the National Communications Commission (NCC) said yesterday.
The agency unveiled the legal framework of the new draft after an old draft, which was created in 2020 following a controversy involving Chinese streaming service operator iQiyi, was criticized for requiring operators to divulge what might be considered sensitive business information and for not incentivizing operators to generate new content.
Some criticized the government’s failure to effectively tackle rampant copyright infringement on some online streaming sites.
NCC Deputy Chairman and spokesman Wong Po-tsung (翁柏宗) told the commission’s weekly news conference that Chinese OTT TV operators are regulated by 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), not the new draft act.
The Ministry of Economic Affairs has since 2020 banned Taiwanese firms from serving as agents for Chinese streaming platforms, he said.
The OTT TV operators regulated by the draft act are those that establish service bases in Taiwan or have substantial ties with the nation, he said.
They are also those that have a substantial number of subscribers, such as Netflix, LiTV, Line TV, MyVideo, friDay, Hami Video, KKTV and Catchplay, Wong said.
The draft would not regulate platforms featuring user-generated content, such as Facebook, YouTube and Instagram, he said.
The regulated operators would be those that have a large user base, or who could affect the welfare or well-being of the public, he said, adding that the commission would publish a list of operators who must register.
The commission has yet to decide how many users or subscribers would qualify as operators, he said.
The draft stipulates obligations common to all OTT TV operators and obligations that only apply to registered operators, Wong said.
All operators are obligated to disclose basic company information, honor their user service agreements, broadcast legally obtained content and cooperate with government requests for information, he said, adding that overseas operators must have local agents.
Registered operators must join local self-regulating streaming service organizations, he said.
If a registered operator wants to suspend or terminate a streaming service, it must inform users in advance and tell them how they will be compensated, he said.
Registered operators must also commit to airing or producing content targeting Taiwanese audiences, Wong said.
The NCC is considering requiring overseas operators to work with local content providers, he added.
Overseas operators without local agents or operators failing to register as required would face penalties, he said.
Under the draft act, the NCC could order public communication networks, telecoms and Internet service providers to reject the services of an OTT TV operator if a final court verdict rules that it contravened the Copyright Act (著作權法), Wong said.
The draft act provides tax incentives for operators that produce local content, as long as the incentives comply with tax laws, Wong added.
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