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Date:
March 5, 2021

New Rules for Regulation of Digital Platforms in India

India's government has established new rules for digital news organizations, social media intermediaries and OTT platforms under the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, released by the Electronics & Information Technology Ministry and the Information & Broadcasting Ministry on Feb. 25 2021.

Framed under the Information Technology Act or the IT Act, 2000, the guidelines for digital media and OTT will become active on the date of publication in the official Gazette of India . The rules consist of three main parts, where Part I defines the terms and Parts II and III delineates compliance requirements. The regulation of social media intermediaries like WhatsApp, Telegram, Facebook, Instagram etc., is detailed in Part II and will be overseen by the Ministry of Electronics and Information Technology (MeitY). Regulations for digital news media and OTT platforms like Netflix, Hotstar, Amazon Prime etc., are contained in Part III, which will be managed by the Ministry of Information & Broadcasting.

Under the IT Act, 2000, OTT platforms were not previously regulated. The new rules however, framed under this Act, seek to exercise the power to regulate them, which can constitutionally only be done via a parliamentary enactment.

Code of Ethics
A Code of Ethics for OTT platforms is outlined in the Appendix of the Rules, under which is present a three tier Grievance Redressal mechanism. Level I -- Self-regulation by the applicable entity, Level II -- Self-regulation by the self-regulating bodies of the applicable entities and Level III -- Oversight mechanism by the Central Government. There does not appear to be any legislative backing or a parliamentary law behind the Oversight Mechanism, which also allows the Ministry emergency powers to block content.

Grievance Redressal and Self-Regulating Mechanism
Level I states that OTT platforms must draw up a grievance redressal mechanism which will be headed by a Grievance Officer who must be an Indian citizen. A 15-day time period has been allocated for the Grievance Officer to address the complaint and revert, beyond which it will be escalated to Level II. In case the complainant is not satisfied with the publisher's decision, they also have the choice to appeal to the self-regulating body in Level II within 15 days of receiving such a decision.

Level II contains the independent self-regulating body, comprising of publishers or their associations and is expected to be headed by a retired judge of either the Supreme Court, High Court or any eminent personality from the fields of media, broadcasting, entertainment or other relevant fields and have a maximum of six other members from these fields. This body must register itself with the Ministry of Information & Broadcasting and has the power to provide warnings, censure, admonish or reprimand the publisher, require an apology from the publisher, reclassify ratings, make changes to the content descriptors, synopsis, access control measures of the content or even censor the content. It will then pass on its decision to the publisher in the form of a guidance or advisory and inform the complainant of its decision within 15 days.

In Level III, if the complainant is not satisfied by the self-regulating body's decision, they can appeal to the Oversight Mechanism of the Central Government within 15 days of receiving the decision. Non-compliance by the publisher to the self-regulating body's directions can also result in the complaint being forwarded to Level III. This level comprises an Inter-Departmental Committee consisting of representatives from the Ministry of Information & Broadcasting, Ministry of Women & Child Development, Ministry of Law & Justice, Ministry of Home Affairs, Ministry of Electronics & Information Technology, Ministry of External Affairs, Ministry of Defense and such other Ministries and Organizations, including domain experts. The Chairman of the Committee will be a Joint Secretary from the Ministry of Information & Broadcasting. The primary objective of this Committee will be to address complaints regarding decisions taken at Levels I and II, and it is empowered to delete or modify content for preventing incitement to the commission of a cognizable offence relating to public order.

Rules for providers of OTT content
OTT content publishers are forbidden from showing any content that is prohibited under Indian law. There is also mention of exercising caution when showing content that can be detrimental to the sovereignty and integrity of India or has the potential to cause friction with its allies. Additionally, OTT providers are asked to remain sensitive when portraying the culture, beliefs, practices or views of any racial or religious group in the country. Also required is self-classification of the OTT content into five new age-based categories -- U (Universal), U/A 7+, U/A 13+, U/A 16+, and A (Adult). Access control mechanisms like parental locks for content classified U/A 13+ or higher and reliable age verification mechanisms for content classified as "A" must be implemented by the OTT providers.

A major concern for OTT providers is the Oversight Committee's power to block access to content that it deems unfit for the public which is seen as the government's overreach to suppress creativity. However, the secretary of the Ministry of Information & Broadcasting, Amit Khare, moved to quash these concerns -- "There will be no authoritarian process. The regulation system is accountable to the courts. Any misuse of power can be checked."

Khare said that these rules represent a paradigm shift in policy. "As of now, any movie that released to theaters needs to be approved by the Classification Board, but for these OTT platforms, no such requirement is there. The government has left the decision up to them. They can decide what labels to use. The idea is that the viewer should be aware of what they will be watching."

He stressed that government would in no way alter the content available. "Films only have three categories, while we have provided five for OTT platforms. The government is willing to consider extending a similar classification for movies released in theatres as well." Khare also highlighted how OTT platforms have democratized entertainment. "These rules were debated for over a year-and-a-half. We have also taken a conscious decision to not set up a web portal where grievances can be filed as we wanted to make sure people didn't think the government was needlessly interfering," he said. "The people can directly complain to the platform and if the complaint is not resolved by their standards, it can be escalated to the ministry."

Related Insights

The Global Rules of Content Are Changing

Across the past eight issues of Spherex’s weekly World M&E News newsletter, one theme has become undeniable: regulation, censorship, and compliance are rewriting the rules of global media. From AI policy to platform accountability, from creative freedom to cultural oversight, content creation is now inseparable from compliance.

1. Platforms Tighten Control Through Age and Safety Laws

U.S. states such as Wyoming and South Dakota have enacted age-verification laws that mirror strict internet safety rules already seen in the U.K., signaling a broader legislative trend toward restricting access to mature material.

At the same time, Saudi Arabia’s audiovisual regulator ordered Roblox to suspend chat functions and hire Arabic moderators to protect minors—an example of government-imposed moderation replacing voluntary compliance.

Elsewhere, Instagram’s PG-13 policy update illustrates how platforms are preemptively adapting before new government rules arrive.

2. Censorship Expands — Even as Its Methods Evolve

Censorship remains pervasive but increasingly localized. India’s Central Board of Film Certification demanded one minute, 55 seconds of cuts from They Call Him OG, removing what they considered violent imagery and nudity.

In China, the horror film Together was digitally altered so that a gay couple became straight using AI. Responding to Malaysia’s stricter limits on sexual or suggestive content, censors excised a “swimming pool” scene from Chainsaw Man – The Movie.

Israel’s culture minister threatened to pull funding from the Ophir national film awards after a Palestinian-themed film about a 12-year-old boy won best picture.

3. AI and Content Creation: Between Innovation and Oversight

AI remains both catalyst and controversy. Netflix announced new internal policies limiting how AI can be used in production to protect creative rights and data ownership.

OpenAI’s decision to allow adult content on ChatGPT under “freedom of expression” principles sparked industry debate about whether platforms or creators set the moral boundaries of AI. OpenAI’s CEO Sam Altman emphasized in a statement, the company is “not the moral police.”

Meanwhile, California passed the Digital Likeness Protection Act to combat unauthorized use of celebrity images in AI-generated ads.

4. Governments Target Global Platforms

The Indonesian government is advancing a sweeping plan to filter content on Netflix, YouTube, Disney+ Hotstar, and others using audience-specific content suitability metrics.

At the same time, the U.K. and EU are reexamining long-standing broadcast rules, with Sweden’s telecom authority proposing the deregulation of domestic broadcasting to encourage competition.

These diverging approaches—tightening in one market, loosening in another—underscore the growing fragmentation of global compliance standards.

5. Compliance as Competitive Advantage

The real shift is strategic: companies now see compliance as value creation, not red tape. As Spherex has argued in recent Substack articles, The Hidden Costs of Non-Compliance in Video Content Production and Why Content Differentiation Matters More Than Ever, studios and creators who anticipate regulatory complexity and make necessary edits on their terms while remaining true to their stories can reach more markets and larger audiences with fewer risks.

In other words, understanding compliance early has become the difference between limited release and global scale.

Conclusion

From new age-verification laws to AI disclosure acts and streaming filters, regulation now defines the boundaries of creativity. The next evolution of media will belong to those who can move fastest within those boundaries—leveraging compliance not as constraint but as clarity.

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Spherex Wins MarTech Breakthrough Award for Best AI-Powered Ad Targeting Solution

The annual MarTech Breakthrough Awards are conducted by MarTech Breakthrough, a leading market intelligence organization that recognizes the world’s most innovative marketing, sales, and advertising technology companies. 

This year’s program attracted over 4,000 nominations from across the globe, with winners representing the most innovative solutions in the industry. This year’s roster includes Adobe, HubSpot, Sprout Social, Cision, ZoomInfo, Optimizely, Sitecore, and other top technology leaders, alongside in-house martech innovations from companies such as Verizon and Capital One.

At the heart of this win is SpherexAI, our multimodal platform that powers contextual ad targeting at the scene level. By analyzing video content across visual, audio, dialogue, and emotional signals, SpherexAI enables advertisers to deliver messages at the most impactful moments. Combined with our Cultural Knowledge Graph, the platform ensures campaigns resonate authentically across more than 200 countries and territories while maintaining cultural sensitivity and brand safety.

“Spherex is leveraging its expertise in video compliance to help advertisers navigate the complexities of brand safety and monetization,” Teresa Phillips, CEO of Spherex, said in a statement. “SpherexAI is the only solution that blends scene-level intelligence with deep cultural and emotional insights, giving advertisers a powerful tool to ensure strategic ad placement and engagement.”

This recognition underscores Spherex’s commitment to building the next generation of AI solutions where cultural intelligence, relevance, and brand safety define success. The award also highlights the growing importance of cultural intelligence in global advertising. As audiences consume more content across borders and devices, brands need solutions that go beyond surface-level targeting to connect meaningfully with viewers. SpherexAI provides that bridge, empowering advertisers to scale campaigns that are not only effective but also contextually relevant and culturally respectful.

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YouTube Thumbnails Can Get You in Trouble

Here’s Why Creators Should Pay Attention

When we talk about content compliance on YouTube, most people think of the video content itself — what’s said, what’s shown, and how it’s edited. But there’s another part of the video that carries serious consequences if it violates YouTube policy: the thumbnail.

Thumbnails aren’t just visual hooks — they’re promos and they’re subject to the same content policies as videos. According to YouTube’s official guidelines, thumbnails that contain nudity, sexual content, violent imagery, misleading visuals, or vulgar language can be removed, age-restricted, or lead to a strike on your channel. Repeat offenses can even result in demonetization or channel termination. That’s a steep price to pay for what some may think of as a simple promotional image.

The Hidden Risk in a Single Frame

The challenge? The thumbnail is often selected from the video itself — either manually or auto-generated from a frame. Creators under tight deadlines or managing high-volume channels may not take the time to double-check every frame. They may let the platform choose it automatically. This is where things get risky.

A few seconds of unblurred nudity, a fleeting violent scene, or a misleading expression of shock might seem harmless in motion. But when captured as a still image, those same moments can trigger YouTube’s moderation systems — or worse, violate the platform’s Community Guidelines.

Let’s say your video includes a horror scene with simulated gore. It might pass YouTube’s rules with an age restriction. But if the thumbnail zooms in on a blood-splattered face, that thumbnail could be removed, and your channel could be penalized. Even thumbnails that are simply “too suggestive” or “misleading” can get flagged.

Misleading Thumbnails: Not Just Clickbait — a Violation

Another common mistake is using a thumbnail that implies something the video doesn’t deliver — for example, suggesting nudity, shocking violence, or sexually explicit content that never appears in the video. These aren’t just bad for audience trust; they’re a clear violation of YouTube’s thumbnail policy.

Even if your content is compliant, the wrong thumbnail can cause very real problems.

The Reality for Content Creators

It’s essential to recognize that YouTube’s thumbnail policy doesn’t exist in isolation. It intersects with other rules around child safety, nudity, vulgar language, violence, and more. A thumbnail with vulgar text, even if the video is educational or satirical, may still result in age restrictions or removal. A still frame with a suggestive pose, even if brief and unintended in the video itself, can be enough to get flagged.

And for creators monetizing their work, especially across multiple markets, the risk goes beyond visibility. A flagged thumbnail can reduce ad eligibility, limit reach, or cut off monetization entirely. Worse, a pattern of violations can threaten a channel’s long-term viability.

What’s a Creator to Do?

First, you need to know how to spot the problem and then know what to do about it. Second, you need to know if the changes you make might affect its acceptance in other markets or countries. Only then can you manually scrub through your video looking for risky frames. You can review policies and try to stay up to date on the nuances of what YouTube considers “gratifying” versus “educational” or “documentary.” But doing this at scale — especially for a growing content library — is overwhelming.  

That’s where a tool like SpherexAI can help.

A Smarter Way to Stay Compliant

SpherexAI uses frame-level and scene-level analysis to flag potential compliance issues — not just in your video, but in any frame that could be selected as a thumbnail. Using its patented knowledge graph, which includes every published regulatory and platform rule, it will prepare detailed and accurate edit decision lists that tell you not only what the problem is, but also for each of your target audiences. Whether you're publishing to a single audience or distributing globally, SpherexAI checks your content against YouTube’s policies and localized cultural standards.

For creators trying to grow their brand, monetize their work, and stay in good standing with platforms, that kind of precision can mean the difference between success and a takedown notice.

Want to know if your content is at risk? Learn how SpherexAI can help you protect your channel and optimize every frame — including the thumbnail. Contact us to learn more.

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