Regulatory Considerations for Gaming Companies Entering Southeast Asia

Southeast Asia has emerged as a pivotal investment destination for Chinese game developers, thanks to its geographic proximity and shared cultural elements. The rapid growth of smartphone usage in this region is fueling an insatiable appetite for mobile gaming, creating a robust market for Chinese game providers. However, as these companies seek to capitalize on rising trends, they must also navigate the complex landscape of local regulations.

This article delves into the critical compliance elements that game companies must consider when entering Southeast Asian markets.

Distribution Management and Regulations

In the past few years, Vietnam has distinguished itself as a highly promising market for mobile gaming. To operate games within the country, developers are required to obtain two essential licenses. The first is the operation license, governed by Decree No. 72/2013/ND-CP, which stipulates guidelines for managing and distributing online information and services. This decree outlines access rules, classification requirements, and content guidelines for online games.

In Vietnam, games are categorized into four classifications (G1 through G4), with G1—multiplayer interactive games on the developer’s server—requiring a specialized license. The second crucial license is the product license, under which stringent regulations govern game distribution. Many publishers might find the qualification criteria and the protracted review process daunting, thereby necessitating meticulous preparation before launching in Vietnam.

In Indonesia, the regulatory landscape has recently shifted. The Ministry of Communications and Informatics introduced Regulation No. 2 of 2024, which requires both local and foreign game publishers to register as private electronic system providers (PSEs) via the Online Single Submission (OSS) system. This reflects a broader effort to standardize and oversee digital content.

Contrarily, Malaysia lacks specific game-focused legislation, relying instead on broader laws like the Communications and Multimedia Act and the Communications and Multimedia Commission Act to regulate gaming content through multimedia oversight. This legal ambiguity can pose challenges for developers seeking clarity.

Data Compliance

In recent years, there’s been heightened global focus on data compliance, a trend mirrored in Southeast Asia. As game developers align with the distribution laws, they must also strengthen their data compliance frameworks.

Singapore boasts a robust legal structure for data compliance through its Personal Data Protection Act (PDPA). Under the PDPA, data controllers and processors must fulfill the “notification and consent” obligations. This means game providers must obtain explicit consent from users prior to collecting, using, or disclosing their personal information, except where exceptions apply.

Vietnam’s approach is similar, relying on user consent as the primary lawful basis for data processing. Game developers must ensure that player consent is informed and voluntary, emphasizing that inaction does not equate to consent. Developers must also disclose what data is processed, why, who manages it, and detail users’ rights and obligations.

In Thailand, the Personal Data Protection Act necessitates obtaining explicit consent from players before any data collection, which must be communicated clearly and understandably.

Rating System

Throughout Southeast Asia, game rating systems are established to protect players according to their age. In Vietnam, a game’s classification must be prominently displayed, categorized into three age segments: suitable for all, suitable for ages 12+, and suitable for adults 18+.

Game providers have an obligation to showcase the age classification at the top left corner of game advertisements and during gameplay. Should a game’s rating not comply with regulations, the Ministry of Information and Communications may require adjustments within ten working days.

Indonesia, through its Regulation No. 2 of 2024, has updated its rating criteria to five categories based on content: 3+, 7+, 13+, 15+, and 18+. Publishers must reclassify games whenever there are content modifications; non-compliance can lead to administrative penalties, including potential access termination.

Singapore rigorously protects minors, implementing the Video Games Classification system since April 2008. This framework includes Advisory 16 (suitable for ages 16 and above) and M18 (restricted to ages 18 and above). The latter requires strict age verification by retailers, and any violation in selling restricted titles to those underage may lead to prosecution.

Jeff Yang is a director at Wang Jing & GH Law Firm