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Chinese Government Agencies in Turf War over Gaming

Sohu IT, 9/19/09

On September 18, director Tuo Zuhai of the Cultural Marketing Department of China's Ministry of Culture (MoC) said that as online games are not "publications," the MoC, not the General Administration of Press and Publication (GAPP), is the agency in charge of regulation of online games.

Tuo explained that under the clarified delineations of authority in a recently released government document, the term "online publication of online games" refers to online game publications, while "prior approval" refers to GAPP review and approval of online game publications prior to the Ministry of Industry and Information Technology (MIIT)-approved provision of service to internet users. "Publications," according to Tuo, refers to newspapers, periodicals, books, audiovisual products, or other digital publishing. By way of example, Tuo said, a game disc would be considered a publication, while game software clients made available for download would not, meaning that they would be overseen by the MoC under regulations for the online gaming industry.

Review and approval of imported online games such as World of Warcraft (WoW), Tuo said, would be managed uniformly by the MoC provided that the games not involve dissemination as publications.

Sohu IT quoted a source close to GAPP as saying that the administration was "furious" about WoW operator Netease's (Nasdaq: NTES) decision to resume WoW service by going around GAPP. The source said GAPP continues to believe that WoW approval remains in its purview, and that its investigation of the joint venture company set up by Netease and WoW-developer Blizzard has made no progress; Netease's unilateral decision to resume WoW service has made affairs "extremely complicated."

GAPP has not yet commented on the matter, and Netease has declined to provide an explanation for its actions. A search of the GAPP website for new developments in its review of WoW turned up no new statements.

Keywords: digital publishing law Blizzard online gaming WoW Tuo Zuhai Netease Internet regulation MIIT Ministry of Culture GAPP NTES

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