The Italian Competition Authority (AGCM) has launched in-depth investigations into Activision Blizzard, a company owned by Microsoft (NASDAQ:MSFT), scrutinizing its practices related to the popular video games “Diablo Immortal” and “Call of Duty Mobile”. Concerns have emerged that certain practices might infringe Italy’s consumer protection rules. This action sheds light on the increasingly complex world of mobile gaming and the fine line companies tread between engaging users and respecting consumer rights.
AGCM’s scrutiny extends beyond the current case with Activision Blizzard. Earlier investigations involved a Chinese AI system, DeepSeek, and the regulator recently penalized Apple (NASDAQ:AAPL) with a substantial fine for unfair practices with third-party developers. This continuous enforcement reflects AGCM’s proactive stance in monitoring various sectors to ensure compliance with competition laws.
What Practices are Under Investigation?
The investigation targets several aspects of “Diablo Immortal” and “Call of Duty Mobile,” particularly focusing on whether they truly align with their “free” game promotions. Although the games are advertised as free, they include in-game purchases, which allegedly exploit user-interface design and persuasive tactics. AGCM points to strategies that might mislead players, especially the use of limited-time offers that encourage impulsive spending.
How are These Practices Affecting Users?
According to AGCM, these design strategies not only affect adult gamers but can also significantly impact minors, leading them to spend more than anticipated. The regulator highlights concerns about the difficulty for players to understand the true value of in-game virtual currency, possibly leading to unintended excessive expenditure.
“These practices…may influence players as consumers — including minors — leading them to spend significant amounts,” stated AGCM in their release.
Additionally, AGCM is evaluating the parental control features within these games, which are reportedly set at lower protection levels by default, allowing easier access to in-game purchases and interactions.
Furthermore, concerns have been raised regarding the consent mechanisms for personal data collection and account management practices. AGCM is examining how the terms concerning players’ contractual rights are communicated and if unilateral account suspension practices lead to loss of purchased digital content.
“AGCM is investigating…the company uses its ability to block gaming accounts unilaterally,” mentioned in their detailed discussion.
This investigation could lead to significant scrutiny and potential reforms in the gaming industry, affecting not only companies but the gaming community at large.
The AGCM’s ongoing efforts signify a broader investigation into competitive practices within the tech and gaming sectors. Companies need to carefully assess their strategies to ensure transparency and fairness, as regulatory bodies are increasingly vigilant. Future gaming releases may see changes in monetization strategies and parental control settings to adhere closer to consumer protection expectations.
