Online game world-Regulation Warcraft

By  Saudi Ali, Friday 6.11.2009

From China Real Time Report:
The turf battle between two Chinese bureaucracies appears to be escalating, with NetEase and the World of Warcraft videogame at its center.

Bloomberg News

According to a statement, China’s General Administration of Press and Publications said it rejected NetEase’s application to operate Burning Crusades, the latest version of World of Warcraft. NetEase acquired the license to the popular game after Activision Blizzard dropped its previous China licensee, The9.
The regulator demanded, however, that NetEase stop taking payments and registering new game accounts, or else face punishment that includes “suspension of its Internet service.”
GAPP acknowledged that it had allowed NetEase (through a Shanghai affiliate) to start testing the game from July 30 on the condition that the company wouldn’t charge players or accept new account registrations. But on Sept. 19, NetEase officially resumed the operation of WoW in mainland China, allowing Chinese players to add money to existing accounts and register for new ones, even though it hadn’t received formal approval — actions which GAAP characterized as illegal.
China’s Ministry of Culture promptly weighed in with a response. Liu Qiang, director of the ministry’s Internet culture office, said that GAPP would be violating government regulations if it punished an online game company, according to Sina.com.
The central government has previously tried to clarify the responsibilities of the two regulators regarding Internet games. According to China’s State Commission Office for Public Sector Reform, GAPP is responsible for pre-approval of online game publication, but once a game is released online, it falls under the sole jurisdiction of the Ministry of Culture.
On Sept. 28, culture officials again released a notice that said it alone could supervise China’s online-game market. It added that it would be in charge of punishing companies that operate online games without GAPP approval.
Last month, GAPP released a circular banning foreign investment in China’s online-game industry.
Neither GAPP nor the MoC responded to questions regarding the apparent conflict. NetEase declined to comment.
Chinese WoW players are divided over the dispute. “WoW playes are the ones suffer the most…who cares about us?” said one player on a popular local game forum. Other said they were taking a wait-and-see approach.