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NetEase's gaming anti-corruption sweep blacklisted 27 partners tied to ¥2B in contracts

A November 2024 anti-corruption sweep found corrupt practices across NetEase's gaming supply chain; 27 partners were banned and the list later grew

NetEase · 2024-11

What happened

In November 2024, NetEase's gaming division announced an internal anti-corruption sweep of its partnership and marketing channels. The sweep identified corrupt practices in the company's dealings with outside partners — agencies, distribution channels and marketing vendors that earn money from game promotion. As a result, 27 partner companies were blacklisted, meaning they were barred from future business with the company, and employees found to be involved were dismissed.

The implicated contract volume was reported at roughly ¥2 billion (about $280 million) — a measure of how large the affected partner economy had become. In January 2025 the company published an expanded list, adding another 58 companies, bringing the total of blacklisted partners to 85.

For an operator whose games generate revenue through live-service operations, channel partnerships and marketing spend, the sweep was a governance reckoning: the money moving to partners was moving without the controls that an internal procurement ledger would have had. The scale of the blacklist suggested the practice was embedded in how the business worked, not an isolated case.

The public part of the episode ended with the blacklist and the dismissals. The structural question — how approvals for partner payments were granted and audited — was left to internal reform, and the case became a reference point for the gaming industry's partner-economy risk across China.

Why it happened

  • Gaming revenue enters through partners — channels and promoters — and money moving outside purchase orders is where controls rot first; the ¥2B implicated was the tab for years of loose approvals.
  • A blacklist is a snapshot of what got caught, not a fix for how it happened — the payment and approval pipeline that let corrupt partners get paid had to be rebuilt, and that work is invisible.
  • The partner economy grew faster than the compliance function around it, and by the time the sweep ran, the practice was structural rather than exceptional.
What it cost~¥2B in implicated contracts; 27 partners blacklistedcostly

The lesson

Corruption controls are only as good as the least-audited money flow — in businesses where revenue enters through partners, the audit must follow the partner money, not the internal ledger.

Aftermath

NetEase published the expanded blacklist in January 2025 and continued internal compliance reform in the gaming division. The case became a widely cited example of partner-channel governance in the Chinese gaming industry.

Sources

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