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Source: NetEase/Blizzard JV Under Investigation
An unnamed insider said China's General Administration of Press and Publication (GAPP) has appointed Shanghai's News and Press Bureau to investigate a joint venture established by NetEase (Nasdaq:NTES) and Blizzard Entertainment, a division of Vivendi Games and Activision merger Activision Blizzard (Nasdaq:ATVI), reports china.com.
China forbids foreign companies from operating online games domestically through a joint venture or sole investment; Blizzard and NetEase will be penalized if their JV is found to be involved in domestic game operation, said the report.
According to a recent GAPP notice, China does not allow public display of imported online games that have not received government approval, reports Sina. All overseas games must receive GAPP approval before their display, trade or promotion, or the host of these events will shoulder legal responsibilities, said the notice.
NetEase World of Warcraft Project Director Li Riqiang refused to comment on restrictions governing game display and promotion, reports qq.com. WoW is scheduled to be exhibited at Shanghai's China Digital Entertainment Expo & Conference (ChinaJoy) on July 23, according to unnamed company insiders
Blizzard and NetEase announced August 13, 2008 that they had established a JV to support operation of Blizzard games Starcraft II, Warcraft III: Reign of Chaos, Warcraft III: The Frozen Throne and affiliated multiplayer service platform Battle.net in China.
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