Skype could be designated illegal in China



BEIJING/NEW YORK | Fri Dec 31, 2010 5:16pm EST

(Reuters) - The popular Internet telephone service Skype could be dealt a major setback in one of the world's largest markets as the Chinese government cracks down on what it called illegal Internet telephone providers.

A Chinese government circular from the powerful Ministry of Information and Industry Technology called for a crackdown "on illegal VoIP (voice over Internet protocol) telephone services" and said it was collecting evidence for legal cases against them. It did not name any phone companies.

Skype was still available in China on Friday evening through its joint venture partner TOM Online.

Skype had not yet been contacted by Chinese government officials, a Skype spokesman said on Friday in the United States.

http://www.reuters.com/article/idUSTRE6BU0XN20101231

Skype's partner says it is legal in China

BEIJING | Tue Jan 4, 2011 4:08am EST

(Reuters) - Skype's partner in China, TOM Group, said the web-based calling service is complying with Chinese law, even as a crackdown on illegal Internet telephone providers could complicate Skype's operations in the country.

The comments from TOM Group, which is 51 percent owned by Hong Kong billionaire Li Ka-Shing, came as potential investors in Skype's planned $1 billion initial public offering year fret that any ban on Internet telephone services in China could exclude the company from of the world's largest Internet market.

"The operation of Skype in China is compliant with local laws and regulations," a TOM Group spokeswoman told Reuters on Tuesday. "Currently, it is business as usual while service provision stays normal."

http://www.reuters.com/article/idUSTRE7031DR20110104

China is really doing bad with internet company's. Firstly they banned google from china and now they are try to ban skype from china. They just want to promote there own internet company's. If skype say is legal than where is the problem for Chinese government.