Online Videogame Cos. Must Prepare For China Data Law

The People's Republic of China is a critical market for the online videogame industry, and China strictly regulates that industry for content, addiction avoidance, protection of minors, and other factors.

Data is an important asset for online videogame companies, and China has developed a powerful regulatory regime for data protection. In its most recent data protection move, the PRC National People's Congress passed the Personal Information Protection Law, or PIPL, which will come into effect on Nov. 1.

The PIPL creates unique challenges that will particularly affect the online videogame industry because of the industry's nature, the PIPL's extraterritorial application,¹ and the magnitude of China-based users. These challenges include the need for Mandarin-language terms of use and consents² as well as the necessity for companies that process China-based personal information outside China to appoint a responsible party inside China.³