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However, this trajectory was dramatically halted in July 2025 when the Indian government banned Ullu and 24 other OTT apps for violating obscenity laws. The government cited the platforms for broadcasting "obscene and, in some cases, pornographic content" in contravention of the IT Act and the Indian Penal Code. This action sent shockwaves through the digital world, highlighting the growing scrutiny of unregulated content on streaming services and leaving millions of paying subscribers unable to access the platform's library.

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