[News] China Proposes New Measures to Overhaul Mobile Games

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In a significant move to regulate online and mobile games, China’s National Press and Publication Administration has issued a draft regarding online game management measures, with the intention of soliciting public opinions.

It is stipulated that online games are prohibited from offering inducement rewards such as daily login bonuses, first-time recharge perks, and consecutive recharge incentives. This directive directly challenges the prevailing business and monetization models in the current landscape of online and mobile gaming.

The regulation further mentions that, game publishers are forbidden from providing or tolerating high-priced transactions of virtual items through speculative or auction formats. All online games must implement user recharge limits, which should be publicly disclosed in their service rules.

For users engaging in irrational consumption behavior, there should be pop-up warning reminders. When providing random draw services, online game publishers must reasonably set the draw frequency and probabilities, avoiding inducing users to overspend.

Additionally, alternative methods such as virtual item exchanges and direct purchases with in-game currency should be offered to users to obtain items with similar functionality and value-added services.

The regulations also emphasize that the online game publishers should announce the termination of publishing or operating the game at least 60 days in advance. Refunds or exchanges should be conducted in legal currency or other methods accepted by users, based on the proportion of user purchases.

The regulations stipulate that online game publishers must have the necessary technical equipment, related servers, and storage equipment located within the territory of China.

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