China has shut down Apple Inc.'s online books and movie services following enacting of stringent rules governing the web contents. Unveiled in March, the new law has outlawed foreign ownership of online publishing services.
The Chinese online services rule also requires that all contents represented to Chinese people must be stored on servers based on the Chinese mainland. Apple expects restoring the services any time soon, according to a report published in BBC.
However, the Chinese move has rippled the US tech industry since Apple has been acclaimed since long for its success story in China. Apple's popularity in the Chinese market has helped the tech giant to maintain strong growth during the past two years. Even Beijing's campaign for 'buy local' has failed to check the onrush for Apple products, though sales of many electronics makers have crimped by this time, reports The Wall Street Journal.
Prior to shutting down Apple's online books and movie services, Chinese authorities have taken down DisneyLife during early March. The online content delivery service has been launched conjugally by Disney and ecommerce giant, Alibaba. The service has become unavailable within less than a year of its official launch. However, the company has committed to make full refund to its customers on demand, according to a report published in South China Morning Post. A meeting between Apple and China's State Administration of Press, Publication, Radio, Film and Television has been held last week. During the meeting, the Chinese officials have pointed new rules restricting foreigners owning any entity that is engaged in online publishing. They have also cited a provision promulgated in 2008 that requires license to broadcast videos on the Internet and limits license eligibility to Chinese companies only. Industry insiders from China have wondered why this provision hasn't restricted Apple from operating its movie service inside the country. An Apple spokesperson has declined to reveal any information on its license holding. He has even denied clarifying how Apple expects to revive its iBooks and iTunes Movies services in China. Meanwhile, China has defended the restrictions arguing that online publications and harmful ideas need to be monitored in combating terrorism. The new rules are believed to foster the success of indigenous Chinese net firms, such as Huawei, Alibaba and Tencent.
