The US web service provider, Yahoo has shut down its news services in India. The decision was taken in purview of changes in the rules of foreign investment limit (FDI). The new rules of the Government of India says that no media outlets in the country are allowed to invest more than 26 per cent.
The decision includes the shutting down of the sites like Yahoo Cricket, Yahoo Finance, Yahoo News and Entertainment. However, it will not affect Yahoo Mail and Yahoo search engines. Yahoo’s global public policy head, April Boyd said that the range of foreign investment for media companies working in the field of news and current affairs in India has changed. The changes made by the government have been applied to digital media companies uploading news.
“Businesses with news and current affairs content have not been approved by the government due to restructuring operations and financial challenges within the stipulated period and for all these reasons we have to shut down Yahoo sites,” Boyd added.
According to the new FDI rules, up to 26 per cent foreign investment can be made in India’s digital companies along with government approval. The new rules will come into effect from October 2021.