NetEase reportedly suing Blizzard for $43.5 million

Blizzard Entertainment is reportedly being sued by NetEase, its former publishing partner in the Chinese market, over the server shutdown in January.

According to reports by Sina Technology and Wowhead, NetEase is seeking 300 million yuan in damages (around $43.5 million) from Blizzard, which NetEase says closed services to more than 1 million users in the Chinese markets after negotiations to renew a licensing agreement fell through. NetEase and Blizzard’s 14-year-long partnership came to an end in January, after which NetEase made a strong statement by demolishing a Blizzard statue on a stream, shortly after players lost access to the publisher’s titles in China.

Related: Riot suing NetEase competitor for copying ‘substantial parts of VALORANT’

Now, NetEase is reportedly asking for due compensation, in addition to payment for unsold merchandise stocks, as well as violation of licensing agreements and a refund of deposits made for upcoming games that didn’t release. The partnership was worth around $750 million in annual revenue.

Meanwhile, players are still unable to play Blizzard games in China since the publisher has yet to find another licensing partner to maintain its operations in the country. When the servers shut down, Blizzard promised to give refunds to players, but NetEase claims it has actually been refunding players.

This latest development in the NetEase-Blizzard saga comes just weeks after Activision Blizzard settled for $18 million with the U.S. Equal Employment Opportunity Commission (EEOC) amid allegations of gender-based discrimination, retaliation, as well as sexual harassment.

Dot Esports has reached out to Blizzard for comment. This article will be updated in the event of a response from the publisher.

Update April 24 3:06pm CT: This article has been updated to clarify that NetEase is suing Blizzard based on reports by Sina Technology and Wowhead. An Activision spokesperson said, “we have not received a lawsuit.”

Update April 25 8:15am CT: Wowhead reported the lawsuit report mistakenly reported NetEase was the one suing Blizzard, while the case was filed by The9’s Yang Jun who asked for refunds. The case was dismissed by the court today.

Update April 25 9am CT: An Activision spokesperson provided the following statement to Dot Esports: “We haven’t received the lawsuit yet, but we are confident we aren’t in breach of any licensing agreements. The terms NetEase appears to be complaining about reflect standard industry practice and have been mutually-beneficial for years. While this persistent campaign by one former partner is disappointing and puzzling, it’s important to note that we have enjoyed nearly two decades of positive experiences operating in China, and remain committed to serving players and protecting their interests.”