Italy Launches Investigation into Microsoft Over Game Sales Practices

Italy’s competition authority has initiated investigations into Microsoft’s Activision Blizzard unit regarding alleged “misleading and aggressive” sales practices associated with its video games, notably Diablo Immortal and Call of Duty Mobile. On January 16, the Italian watchdog announced that it is examining whether Microsoft has violated consumer protection laws, particularly concerning practices in a sector susceptible to gambling addiction.

The Italian Antitrust Authority, which also monitors consumer rights, stated that Microsoft operates in a manner that potentially undermines the professional diligence required within the gaming industry. The inquiry is primarily focused on the company’s methods of encouraging purchases of additional content for these free-to-play franchises. According to the regulator, these tactics include in-app messages and push notifications that prompt players to spend money on virtual items.

The investigation raises concerns about the use of virtual currencies in these games, which can encourage players, including minors, to spend substantial amounts of money without fully realizing it. Players can acquire these currencies through real money transactions or by earning them in-game. Such mechanics can lead to expenditures exceeding what is necessary for game progression.

In addition to scrutinizing sales tactics, the regulator criticized the default parental control settings within the games and the clarity of information provided about players’ contractual rights. The authority noted that these features may inadvertently lead players to waive their rights without understanding the consequences.

The investigation also highlighted the absence of options for players to contest potential account bans, which could result in the loss of significant investments in digital content. The regulator emphasized that this lack of recourse could be financially detrimental for many gamers.

As one of the largest video game companies globally, Microsoft is no stranger to regulatory challenges. The outcomes of this investigation could have broader implications for its operations in Europe and set precedents for how gaming companies address consumer protection issues.

Microsoft’s Italian press office has not yet responded to requests for comment regarding the investigation. The findings from this inquiry could influence future practices in the gaming industry, particularly concerning how companies engage with players and manage their spending habits.