Italian regulator to investigate in-app purchase systems of Microsoft Activision Blizzard’s two most popular games

Italy’s competition watchdog has announced that it has opened two investigations into Microsoft’s Activision Blizzard unit. AGCM has alleged that the gaming giant used “misleading and aggressive” practices to drive in-app purchases in its hit mobile titles: Diablo Immortal and Call of Duty: Mobile. These are considered as two of the industry's most lucrative free-to-play franchises. Regulators argue that the company’s tactics may violate consumer protection laws as they may foster gambling-like behaviours.

According to news agency Reuters, the AGCM said that the Activision Blizzard division was “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.”

In-app notifications for incentives under lens

The regulator expressed concern over the use of push notifications and in-app messages that allegedly pressure players to buy extra content both during and outside of active gameplay. A primary focus of the investigation is the use of virtual currencies, which the watchdog claims can obscure the true cost of items.

“The use of virtual currencies could lead gamers, including minors, into spending significant sums, even more than those necessary to progress in the game, without fully realising it,” the regulator stated. These currencies are often purchased with real money and are a staple of the mobile gaming economy. However, they have drawn the ire of European regulators.

Italy regulator criticises parental controls

Beyond the currency and sale tactics, the AGCM criticised Activision’s default settings and legal transparency. The regulator claims default parental controls options are insufficient for protecting young players. When it comes to hidden waivers, the information on contractual rights is allegedly presented in a way that leads players to “unknowingly waive” their legal protections.

The probe also highlighted a lack of recourse for players whose accounts are blocked, which can result in the loss of “substantial” investments in digital content.