Skype, the fast-growing internet communications company that belongs to Ebay, has admitted that its partner in China has censored text messages.

It defends this complianceas the only way to do business in China. Niklas Zennström, Skype's chief executive, responded in a Financial Times interview, to accusations that the company had censored text messages containing words like "Falun Gong", a banned movement, and "Dalai Lama". He said Tom Online, its joint venture partner in China, was complying with local law. "Tom had implemented a text filter, which is what everyone else in that market is doing," said Mr Zennström. "Those are the regulations."