Centre tells Delhi High Court it has competence to regulate online gaming; says it is necessary to protect children

The Central government has told the Delhi High Court that it has legislative competence to regulate online games and that changes have been made to the Information Technology Rules (IT Rules) to protect the youth across the country [Social Organisation for Creating Humanity v. Union of India]..The Ministry of Electronics and Information Technology (MEITY) said that the IT Rules, as amended on April 6, 2023, requires online gaming intermediaries to undertake the same due diligence procedures across India.“Such due diligence and the prescribed verification processes shall serve as necessarу safeguard to protect vulnerable youths and children across the country and at the same time regulate the online gaming industry and offer online games in a responsible manner,” the affidavit submitted by MEITY stated.On its legislative competence to bring in the changes, it said that Entry 31 of List I (Union List) of the Seventh Schedule of the Constitution empowers the Centre to make internet communications safer for users."There is no specific reference to the word 'Online Gaming' in the Constitution. However, it is an indisputable fact that online gaming is virtual, boundaryless and part of the internet ecosystem…therefore, Entry 31 and Entry 97 (residual entries) of the Union List allow the Central Government to legislate on matters pertaining to online gaming.”.The government also referred to Articles 249, 19(1)(g), 19(6) as well As Entry 42 List I of the Seventh Schedule of the Constitution to say it has the power to introduce such a law.It further said that IT Rules under challenge are the consequence of various judicial interventions and multiple court directions..The affidavit was filed in response to a Public Interest Litigation (PIL) by a Noida-based non-governmental organisation (NGO) named Social Organisation for Creating Humanity (SOCH) challenging the constitutional validity of the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Amendment Rules, 2023 (IT Amendment Rules) insofar as they relate to regulation of online gaming.The PIL stated that the Constitution of India gives state governments exclusive powers to legislate on the issues of betting and gambling. Therefore, the IT Amendment Rules are beyond the legislative competence of the Central government.The NGO has also expressed concerns over the appointment of Self-Regulatory Bodies (SRBs,) stating that they would be financed by gaming companies that already have a vested self-interest in regulation of the gaming community..However, the government said that under Rule 4A(2)(d) of the IT Rules, the board of directors which will be instituted would be a diverse multi-stakeholder body that would be independent and will have no conflict of interest.“Further, the provisions for appeal on grievance redressal relating to online games are also provided by the Grievance Appellate Committee (GAC).”