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Skype's partner in China, TOM Group, said the web-based calling service is complying with Chinese law, even as a crackdown on illegal Internet telephone providers could complicate Skype's operations in the country.
The comments from TOM Group, which is 51 percent owned by Hong Kong billionaire Li Ka-Shing, came as potential investors in Skype's planned $1 billion initial public offering year fret that any ban on Internet telephone services in China could exclude the company from of the world's largest Internet market.
"The operation of Skype in China is compliant with local laws and regulations," a TOM Group spokeswoman told Reuters on Tuesday. "Currently, it is business as usual while service provision stays normal."