Blizzard Faces $43.5 Million Refund Lawsuit from NetEase

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Blizzard Faces $43.5 Million Refund Lawsuit from NetEase

Blizzard is in hot water, facing a hefty $43.5 million lawsuit from its former partner in China, NetEase, after their fallout back in January.

Many may think that after demolishing the US firm’s office and various decorations as well as gifting out the sarcastic “Blizzard Green Tea,” the dispute between the two gaming giants has come to an end. But NetEase is nowhere done with it. They have filed a lawsuit seeking ¥300 million. The numbers are equivalent to approximately $43.5 million.

At the heart of NetEase’s lawsuit against Blizzard is the matter of compensation owed to more than 1.12 million players. They have been heavily affected by the discontinuation of games and services since Blizzard left China earlier this year. No longer able to access their game accounts, some have attempted to create new ones in other regions. But this has resulted in conflicts with their original inhabitants. Others turned to refund as an alternative, which Blizzard had promised to provide, and NetEase had paid for in advance. However, even this option has been plagued with various issues that hinder the process. Thus, it’s not surprising that so many players are frustrated and angry.

Blizzard Faces $43.5 Million Refund Lawsuit from NetEase

The allegations leveled against Activision Blizzard suggest that the company contravened licensing agreements. The company is accused of incorporating unfair provisions that tipped the scale in its favor. Such clauses comprise agreements on betting and sizeable deposits made by NetEase to shield Activision from potential risks.

According to Sina Technology, the legal dispute was sparked by Blizzard’s failure to take responsibility for compensating players in the CN service. They also withheld the nearly ¥100 million prepaid commission fee owed to NetEase. The Chinese company claims this is a clear violation of their licensing agreement. Thus, it has caused them significant financial losses.

Activision Blizzard is currently facing multiple legal troubles. So, this lawsuit from NetEase is yet another blow to the company. The case outcome is still pending, and it is unclear what the future holds for both parties. Millions of players are now left uncertain about the future of their favorite games and services. It remains to be seen how these issues will be resolved. Nonetheless, one can only hope their gaming experience won’t be severely impacted.

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