Chinese gaming stocks soared after news that the country's video game regulator had seemingly scrapped proposed rules aimed at curbing "obsessive" gaming. Proposals cause slump: In Dec. 2023, China's National Press and Publication Administration (NPPA) proposed stringent rules to curb excessive gaming, including limitations on in-game purchases, restrictions on daily log-in rewards and the introduction of pop-up warnings for "irrational" behavior. After the proposal, stock prices of Tencent Holdings and NetEase dove, with both gaming companies collectively losing nearly $80 billion in market value.
Last Friday, regulators published draft rules that would ban online games from giving players rewards if they log in every day, if they spend on a game for the first time or if they spend several times on a game consecutively.
Desperate times call for desperate remedies. Cash-starved Byjus is now likely to use part of the proceeds from the Epic sale to keep its parent Think & Learn running.
“We dont want any company to claim later that they were not aware of the details of the recent amendments to the GST laws,” a senior official with the commercial taxes department told ET.
The gaming industry in India is facing tax woes as the GST department issued pre-show cause notices to several cash flow-rich firms in the sector. One of the notices, amounting to an estimated Rs 25,000 crore, was served to fantasy sports company Dream11, making it the largest indirect tax notice in India. This move has sparked legal disputes and challenges from the gaming companies, who argue that the tax demands are retrospective and unfair. The Supreme Court will conduct further hearings on the matter on October 10.