Kim Dotcom has cancelled his album release and birthday party after being advised that it could break electoral laws.

The internet entrepreneur unveiled his new Internet Party yesterday, and planned to hold a "Party Party" at Vector Arena on Monday.

He had said that it was not a launch event for the Internet Party but was being held to launch his new album and celebrate his birthday.

But in a statement released this afternoon, Mr Dotcom said: "Sadly we must cancel my birthday party after we received advice that the event could risk breaching electoral laws.


"Because the tickets were free, we were advised that the purpose of the event could be misunderstood."

"I would like to thank the 25,000 people who registered for my birthday party. You are all amazing!

"I was looking forward to an awesome event with great live music and other surprises - but the future of New Zealand is more important to me than one night of fun."

Around 25,000 people had registered for the free tickets for the event, which was moved from Shed 10 to Vector Arena due to massive demand.

Dotcom shifted the venue for the `Party Party' from Auckland's Shed 10 to Vector Arena earlier this week due to overwhelming demand.

The party was designed to combine his 40th birthday celebrations with the release of his music album, Good Times.

The event was also scheduled to coincide with the second anniversary of the FBI-initiated raids on Dotcom's Coatesville mansion.

The Electoral Commission confirmed that it had provided advice to Mr Dotcom.

It is illegal for a person to offer food, drink or entertainment for the purpose of winning votes.