Italy Probes Activision Blizzard's Aggressive In-Game Sales - AI News Today Recency

# Italy Probes Activision Blizzard's Aggressive In-Game Sales Practices

Italy's competition authority has launched a significant regulatory action against Microsoft's Activision Blizzard unit, opening two separate investigations into the publisher's monetization strategies for two of the gaming industry's most popular mobile titles. The Italian Competition Authority (AGCM) announced Friday that "Diablo Immortal" and "Call of Duty Mobile" are allegedly employing "misleading and aggressive" sales practices that may violate consumer protection laws and exploit players' vulnerability to gambling-like behaviors.[1][3] This investigation marks an escalation in global regulatory scrutiny of mobile gaming monetization and could have far-reaching implications for how the industry handles in-app purchases worldwide.

Misleading Marketing and Aggressive Sales Tactics

The Italian regulator's primary concern centers on how Activision Blizzard pressures players to make purchases through manipulative marketing strategies.[1] The investigation focuses on repeated push notifications and in-app messages that urge users not to miss out on rewards or purchase time-limited offers both during and outside active gaming sessions.[4] These tactics are designed to extend gaming sessions and encourage spending, even though both games are marketed as free-to-play titles.

According to the AGCM, these practices create a deceptive experience where players may not fully understand the financial implications of their actions.[1] The regulator stated that the company is "operating in a manner that violates consumer protection legislation and, in particular, the professional diligence required in a sector highly sensitive to the risks of developing gambling addiction."[6]

Virtual Currency Obfuscation and Hidden Costs

One of the most significant concerns identified in the investigation involves the use of virtual currencies that obscure the true cost of in-game purchases.[1] Players can purchase these currencies with real money, often in bundled packages that make it difficult to calculate the actual monetary value of items.[4] The AGCM warned that this system can lead gamers, including minors, to spend "significant sums—sometimes more than needed to progress in the game—without fully realising how much real money they are using."[1]

The bundling of virtual currency sales compounds this problem by making it challenging for consumers to understand the relationship between virtual and real-world money.[5] This opacity is particularly concerning given the sector's sensitivity to gambling addiction risks, especially among younger players who may lack the financial literacy to recognize the implications of their spending.[3]

Inadequate Parental Controls and Consumer Protections

The investigation also revealed critical gaps in consumer protection mechanisms within both games.[5] The AGCM criticized the default parental control settings, which allegedly default to less restrictive versions that enable minors to make in-game purchases without proper oversight.[4] This creates a significant risk for underage players who may unknowingly incur substantial expenses.

Beyond parental controls, the regulator found fault with how contractual rights information is presented to players.[7] The AGCM stated that players are led to "unknowingly waive" their legal protections through unclear or buried disclosures.[5] Additionally, the investigation highlighted the lack of recourse for players whose accounts are blocked, which can result in the permanent loss of money invested in digital content.[5]

Broader Implications for the Gaming Industry

The Italian investigation represents a critical moment for the global gaming industry, particularly concerning mobile gaming monetization practices.[3] "Call of Duty" and "Diablo" are among the world's most popular video game franchises, making this regulatory action potentially influential across the entire sector.[1] Any enforcement action could establish precedent for how in-game purchases are handled internationally and may prompt similar investigations in other jurisdictions with stringent consumer protection laws.

Unlike regions such as North America, Italy maintains much more stringent rules regarding real-money gaming, which often blurs the lines with gambling regulations.[1] This regulatory environment makes Italy a particularly challenging market for aggressive monetization strategies and suggests that other European nations with similar consumer protection frameworks may follow suit with their own investigations.[3]

Frequently Asked Questions

What specific games are being investigated?

Italy's competition authority is investigating "Diablo Immortal" and "Call of Duty Mobile," both free-to-play titles published by Microsoft's Activision Blizzard unit.[1] These are among the industry's most lucrative and popular mobile gaming franchises.[5]

What are the main allegations against Activision Blizzard?

The AGCM alleges that Activision Blizzard is using "misleading and aggressive" sales practices, including manipulative push notifications and in-app messages designed to encourage spending.[1] The regulator claims the company is violating consumer protection legislation and failing to meet professional standards required in a sector sensitive to gambling addiction risks.[3]

How do virtual currencies contribute to the problem?

Virtual currencies obscure the true cost of in-game purchases by creating a layer of abstraction between real money and spending.[1] When sold in bundles, they make it difficult for players to understand exactly how much real money they're spending, potentially leading to significant unintended expenses, especially among minors.[5]

What concerns does the regulator have about parental controls?

The AGCM criticized the default parental control settings in both games, claiming they default to less restrictive versions that allow minors to make in-game purchases.[4] The regulator also found that information about contractual rights is presented in ways that lead players to unknowingly waive their legal protections.[5]

Could this investigation affect other regions or gaming companies?

Yes, this investigation could have significant global implications.[1] Given that "Call of Duty" and "Diablo" are among the world's most popular franchises, any regulatory action could establish precedent for how the entire industry handles in-game purchases.[1] Other European nations with similar consumer protection frameworks may follow Italy's lead with their own investigations.[3]

What is the potential outcome of these investigations?

While the specific outcomes remain to be determined, regulatory action could result in fines, required changes to monetization practices, or mandated improvements to consumer protections like parental controls and transparency measures.[3] The investigation reflects broader global regulatory scrutiny of mobile gaming monetization strategies that continues to increase across international markets.[3]