According to the new rules of FDI, 26 percent foreign investment can be made in digital companies of India. For this also the permission of the government is necessary.
American web service provider Yahoo has stopped its news operations in India from 26 August. The reason for the closure of all Yahoo news sites is the foreign investment limit (FDI limit). According to the existing rules, foreign investment of more than 26 per cent is not allowed in any media outlets in India. The company will not publish any new content from Thursday. All sites of Yahoo Cricket, Yahoo Finance, News and Entertainment will be closed. However, this shutdown will not affect Yahoo Mail.
Know what the company said?
April Boyd, Global Public Policy Head, Verizon Media, said, “There has been a change in the foreign investment limit for media companies operating in the news and current affairs segment in India. This change will also apply to digital media companies that upload news or act as aggregators.
He said, “There are operational and economic challenges of restructuring media companies in due course. Along with this, the necessary permission has not been received from the government for our news and current affairs content business. So we have to close all the sites of Yahoo in India.
This is the reason for closure
according to the new rules of FDI, 26 percent foreign investment can be made in India’s digital companies. For this also the permission of the government is necessary. The new FDI rule is going to come into effect from October 2021. However, Yahoo Mail and Yahoo search and its adtech business will continue to operate in India.
