Italy's Competition Watchdog Launches Dual Investigations Into Microsoft's Gaming Division
Italy's competition authority, the AGCM, has officially opened two separate investigations targeting Microsoft's Activision Blizzard gaming unit. The regulator alleges the company employed what it describes as "misleading and aggressive" commercial practices to promote in-app purchases within two of its most popular mobile titles: Diablo Immortal and Call of Duty: Mobile.
Regulators Target Lucrative Free-to-Play Franchises
These games represent some of the gaming industry's most profitable free-to-play franchises. Italian authorities contend that Microsoft's tactics potentially breach consumer protection laws. They argue these practices could encourage gambling-like behaviors among players, particularly vulnerable groups.
According to the AGCM's official statement, the Activision Blizzard division appears to be "operating in a manner that violates consumer protection legislation." The watchdog specifically highlighted concerns about "the professional diligence required in a sector highly sensitive to the risks of developing gambling addiction."
In-App Notifications and Virtual Currencies Under Scrutiny
The investigation focuses heavily on how the company uses push notifications and in-app messages. Regulators claim these communications pressure players to purchase additional content both during active gameplay and outside gaming sessions.
A central concern involves the use of virtual currencies within these games. The Italian watchdog asserts that these currencies can mask the true financial cost of digital items, potentially misleading consumers about their spending.
"The use of virtual currencies could lead gamers, including minors, into spending significant sums," stated the regulator. "Players might spend even more than necessary to progress in the game without fully realizing the financial implications."
These virtual currencies, typically purchased with real money, form a fundamental component of the mobile gaming economy. However, they have increasingly attracted criticism from European regulatory bodies concerned about consumer protection.
Parental Controls and Legal Transparency Criticized
Beyond the currency and sales tactics, the AGCM identified additional areas of concern. The regulator criticized what it considers insufficient default parental control settings, arguing they fail to adequately protect younger players.
The investigation also examines legal transparency issues. According to the watchdog, information about contractual rights is presented in ways that might lead players to "unknowingly waive" their legal protections through hidden waivers.
The probe further highlights concerns about account management. Regulators noted a perceived lack of recourse for players whose accounts become blocked, potentially resulting in the loss of what they described as "substantial" investments in digital content.
This development represents another significant regulatory challenge for Microsoft in the European market, following the company's high-profile acquisition of Activision Blizzard. The investigations underscore growing international scrutiny of monetization practices within the gaming industry, particularly concerning free-to-play models and their impact on consumers.
