In what could be a major blow to India’s mobile gaming ecosystem, Krafton, the South Korean gaming giant behind the smash-hit title Battlegrounds Mobile India (BGMI), is facing serious allegations of user data misuse. A recent complaint claims that the company is illegally collecting and transmitting Indian users’ data to Chinese servers, sparking a national conversation around digital security, privacy laws, and the future of BGMI in India.
Who Filed the Complaint—and Why?
The controversy erupted after a Delhi-based non-profit organization, Prahar, filed a formal complaint to the Indian government. According to the complaint, Krafton has been allegedly selling and sharing sensitive user data with Chinese servers through indirect channels, specifically mentioning ties with Tencent, a Chinese tech conglomerate.
Even though Tencent is no longer an official stakeholder in Krafton, the allegations suggest that data could still be routed via back-end systems or past partnerships, raising red flags among cybersecurity experts and lawmakers.
The Data Privacy Angle: Why It Matters
The Digital Personal Data Protection Act (DPDPA) 2023 has made it clear: companies operating in India must store and process user data locally, with clear user consent and transparency on how data is used. Any breach of this could result in heavy penalties, bans, or even criminal charges under Indian law.
According to the complaint, Krafton and its game BGMI are allegedly involved in practices that raise concerns about how user data is being collected and handled.
- Indian user data, including location, phone identifiers, and behavioral analytics, may have been accessed by foreign servers.
- There may be a loophole or hidden mechanism through which data is routed without user knowledge.
- The company is possibly monetizing or sharing this data with third-party entities without informed consent.
This has once again raised concerns about how much access foreign companies have to Indian citizens’ personal data, especially in sectors like gaming where millions of teenagers and young adults are involved.
A History of Tension: The PUBG-BGMI Timeline
To understand the gravity of this situation, it’s important to revisit the past.
- In September 2020, the Indian government banned PUBG Mobile, citing national security concerns due to its connections with China-based Tencent.
- Around mid-2021, Krafton brought the game back with a new identity—Battlegrounds Mobile India (BGMI)—asserting that it met all Indian legal and regulatory requirements.
- BGMI made a massive comeback and became one of the most downloaded games in India, creating an ecosystem of esports tournaments, streamers, and sponsorships.
- However, the game was temporarily banned again in 2022 amid similar concerns, only to return after scrutiny and assurances from Krafton about data compliance.
Now, with new allegations, the game’s future seems uncertain once again.
The Government’s Possible Moves: Investigation or Ban?
While no official action has been taken yet, reports suggest that the Ministry of Electronics and Information Technology (MeitY) is reviewing the complaint. If the data misuse claims are found to be valid, Krafton could be:
- Issued a notice or warning.
- Subject to a full-scale investigation.
- Fined or forced to compensate users under the DPDPA.
- Or, in the worst-case scenario, BGMI could be banned again in India.
Given India’s ongoing push toward data localization and cybersecurity, it is highly likely that strict measures will be implemented if Krafton is found guilty.
Krafton’s Official Stand: “We’re Compliant”
Krafton has strongly refuted the accusations in an official statement:
We prioritize user privacy and ensure full adherence to Indian data protection laws and regulations. All user data is stored in India on secure servers with no unauthorized third-party access.”
The company has also emphasized that it maintains complete transparency in how user data is collected, processed, and stored. However, critics argue that mere statements are not enough; third-party audits or government-led inspections may be necessary to verify these claims.
Impact on the Indian Gaming Community
The controversy has sent shockwaves through the Indian gaming and esports industry, which has heavily relied on BGMI for growth, income, and employment.
- Professional esports teams may face uncertainty around upcoming tournaments.
- Content creators and streamers who rely on BGMI for daily content could lose significant traffic and income.
- Gaming brands, sponsors, and event organizers will also be affected if the game is banned or restricted.
In 2024 alone, India saw over 100 BGMI tournaments, attracting millions in sponsorships and viewership. Any disruption could have a cascading impact on the multi-crore esports economy.
User Awareness: What Should Players Do?
If you’re a regular BGMI player, it’s important to take precautions until the issue is resolved:
- Check App Permissions: Go to your phone settings and review which permissions the app is using—location, microphone, storage, etc.
- Avoid Suspicious Updates or Pop-ups: Only download updates from the official app store.
- Stay Updated: Follow credible news sources and Krafton’s official channels for verified information.
- Backup Progress: Consider linking your game account to a secure Google or Facebook account in case the app is temporarily removed.
The Bigger Picture: India’s Push for Digital Sovereignty
This incident is not isolated. India has been taking strong steps in recent years to assert digital sovereignty and protect user data. From banning Chinese apps to introducing data privacy laws and building a robust digital framework, the focus is clear—India wants control over Indian data.
Companies like Krafton that wish to operate in India must now:
- Host data within Indian servers.
- Offer complete transparency in data handling.
- Be open to third-party audits and compliance checks.
- Avoid any form of backdoor data sharing with foreign entities.
Failure to comply could result in not just bans but also a loss of user trust, which can be harder to recover than market share.
Conclusion: Uncertain Times for BGMI and Krafton in India
The allegations against Krafton are serious and could have far-reaching consequences. While the final verdict is yet to come, the situation underscores the need for responsible data practices in the digital gaming space. For now, users, gamers, and stakeholders will be watching closely as the story unfolds.
Whether BGMI survives this storm depends not just on Krafton’s actions, but on how well it can rebuild trust in the eyes of Indian users and regulators.
Tags:
BGMI data breach 2025, Krafton Tencent news, India privacy law update, BGMI ban news April 2025, BGMI investigation latest, Digital Personal Data Protection Act, Indian esports economy, Krafton data scandal
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