China is fining a gaming company 700,000 yuan (US$99,000) for launching a game without government approval. It’s the first time China has taken such action since reforming its gaming regulatory body.
The Beijing-based mobile gaming company hasn’t been named, but the government notice says the fine is seven times the company’s revenue from the game. Chinese laws stipulate the government can fine companies between five and 10 times the amount of their illegitimate revenue if they are caught operating without a license.
Unlike in most countries, China requires game publishers to obtain a license from the government before launching a title. The government used to turn a blind eye to unlicensed games, allowing the industry to grow through the mid-2010s. But China has recently been tightening the screws.
Last year, China reformed its gaming regulatory body, leading to a nine-month licensing freeze. Now China still isn’t approving as many games as it used to, even with the freeze lifted.