BGMI Receives Approval for Relaunch in India After 10-Month Ban

New Delhi: India has granted approval for the relaunch of the popular mobile game Battlegrounds Mobile India (BGMI) after a 10-month ban, according to South Korean game developer Krafton.

Krafton representatives revealed that meetings were held between South Korea’s foreign affairs and culture ministries and their Indian counterparts to help lift the ban. The Indian government initially blocked BGMI, which is Krafton’s flagship game, in July last year due to concerns about data-sharing and mining in China. It’s worth noting that Krafton is backed by Tencent, a Chinese company that holds a 13.5% stake.

Following discussions, a three-month trial period was agreed upon for the game’s relaunch. The approval was granted after Krafton addressed concerns related to server locations and data security.

Indian deputy minister for Information Technology, Rajeev Chandrasekhar, confirmed this decision in a tweet.

This is a 3 month trial approval of #BGMI aftr it has complied wth issues of server locations n data security etc.

We will keep a close watch on other issues of User harm, Addiction etc in next 3 months before a final decision is taken @GoI_MeitY @PMOIndia https://t.co/9SrYekrHXz

— Rajeev Chandrasekhar 🇮🇳 (@Rajeev_GoI) May 19, 2023

Analysts believe that the impact on Krafton from political tensions between India and China will be limited, as it is difficult for India to impose a complete ban on companies associated with China when they operate through local corporations that employ Indian workers, such as Krafton.

Krafton’s shares rose by 1.45% compared to the broader KOSPI index’s 0.89% increase upon the market’s closure on Friday. Prior to being removed from the Google Play Store and the Apple App Store, BGMI had over 100 million users in India.

It is worth mentioning that Krafton previously faced a ban on another game, PlayerUnknown’s Battlegrounds Mobile (PUBGm), in 2020. In response, the company launched BGMI.

The ban on PUBGm was part of a broader restriction on over 300 Chinese apps, including TikTok, following increased scrutiny of Chinese businesses by the Indian government after a clash between the two countries in 2020. The government also heightened its scrutiny of investments made by Chinese firms in Indian companies.