HIGHLIGHTS
- Singapore had inquired if the app had been "uninternationally prohibited."
- The complaints were forwarded to the information technology (IT) department. India's ban took Sea off guard.
Singapore has expressed concerns with India over its ban on the popular gaming app Free Fire, which is owned by technology giant Sea, in the first evidence of diplomatic involvement after the action alarmed investors, according to four sources cited by Reuters.
Following the restriction, the New York-listed Southeast Asian firm's market capitalization fell by $16 billion (approximately Rs. 1,21,210 crore) in a single day, and investors are concerned that India may extend the ban to Sea's e-commerce app, Shopee, which recently launched in the country.
According to the individuals, who include two Indian government officials, Singapore has questioned Indian authorities why the programme was targeted in a broader crackdown on Chinese applications, despite the fact that Sea has its headquarters in the affluent city state.
Singapore has inquired if the app had been "uninternationally blocked," according to one of the Indian officials aware of the diplomatic push.
Concerns lodged with India's external affairs ministry were forwarded to the information technology (IT) department, which issued the ban, according to two Indian sources.
The sources, who did not want to be identified due to the sensitive nature of the negotiations, said they did not know how or if the Indian government planned to respond to Singapore's concerns.
Singapore government and Sea spokespeople did not immediately reply to emailed demands for comment. India's IT department, external affairs ministry, and primary government spokesperson's office also did not answer.
According to official sources, India stopped Free Fire as part of a set of 54 applications this month that it suspects were transmitting user data to servers in China.
China replied by expressing grave worry and expressing hope that India will handle all foreign investors fairly.
In reaction to the prohibition, Sea told Reuters at the time, "We do not transmit to, or keep any data of our Indian users in, China," noting that the firm was a Singaporean that followed Indian law.
After a border confrontation with China in 2020, India banned 59 Chinese applications, including TikTok, which was expanded this month to 321 apps, including Free Fire.
Important market
According to data from analytics firm SensorTower, India is the top market for both Free Fire and one of its more premium versions, Free Fire MAX, in terms of downloads. However, India accounted for only 2.6 percent of Sea's mobile-game net revenues in 2021. According to insiders, India's prohibition caught the sea off surprise.
According to a person with firsthand knowledge of the case, Alphabet's Google informed Sea and other firms of India's prohibition, causing the Singapore firm to question the US search giant why its app had been withdrawn from the Play Store in India.
According to the individual, Google responded by telling Sea that it was obeying directives from the Indian government and couldn't reveal any further information. Google did not reply to a comment request.
Sea has also requested clarity from India's technology minister. According to two people familiar with the letter, it referred to the company as a "Singaporean" corporation that did not store data in China.
Sea was formed in Singapore in 2009 as Garena, a game publisher, and its founders are Chinese-born Singaporeans.
Free Fire MAX, the premium edition of the game, is now the most downloaded mobile game in India and is still accessible on Google's India Play Store.
