GameSpot brings word that China's General Administration of Press and Publication has revoked NetEase's permit to operate Blizzard's World of Warcraft, citing "gross violations" of Chinese law.
Regulators reportedly claimed NetEase, which landed the localization contract for the massively multiplayer role-playing game in April, had committed "gross violations" of Chinese law. As a result, GAPP officials ordered NetEase to stop charging players of the game in China and cease accepting any new registrations. It also rejected the company's application to localize the first WOW expansion, The Burning Crusade. It'd be interesting to know just how much revenue was at stake here. Millions? Tens of millions?
As a result of the GAPP's move, NetEase saw its shares fall 2.4 percent on the NASDAQ stock exchange to close the day at $37.69. (Shares were down an additional 1.38 percent in after-hours trading.) Reps for the company told Reuters they believe they are in full compliance with the GAPP regulations, and were seeking "clarification" as to what exact violations were committed.