Italy Probes Microsoft Unit Over ‘Aggressive’ In-Game Sales in Call of Duty, Diablo

ROME — Italy’s antitrust authority (AGCM) said on Friday it has opened two investigations into Microsoft’s Activision Blizzard unit, alleging the company used “misleading and aggressive” commercial practices to drive in-game spending in its mobile titles Call of Duty Mobile and Diablo Immortal.

The AGCM said the probe focuses on whether the games’ monetisation mechanics — including time-limited promotional offers and chance-based reward systems commonly referred to as “loot boxes” — may breach consumer protection rules by pressuring users into purchases without sufficient transparency or safeguards.

The regulator flagged the need for heightened professional diligence in digital products aimed at broad consumer audiences, warning that certain purchase systems can exploit behavioural triggers and potentially encourage gambling-like patterns of spending, particularly among younger players.

In a statement, the AGCM said the commercial practices under review could be “aggressive” in nature and may not adequately inform players about costs or purchase conditions in a clear and timely manner.

The investigations come as European regulators step up scrutiny of so-called “freemium” business models, where games are free to download but generate revenue through microtransactions and digital goods.

Microsoft’s Italian press office did not immediately respond to a request for comment.

Microsoft acquired Activision Blizzard in a $69 billion deal completed in October 2023, bringing major gaming franchises under the US software giant’s umbrella.

If violations are confirmed, the Italian authority could order corrective measures and impose penalties under consumer protection rules.

Brief Summary

Italy’s competition authority has opened two investigations into Microsoft’s Activision Blizzard unit over alleged “misleading and aggressive” in-game sales tactics in Call of Duty Mobile and Diablo Immortal. Regulators are examining whether certain monetisation mechanics, including loot boxes and time-limited offers, violate consumer protection rules by pressuring players to spend without sufficient transparency.

FAQs

Q1: Why is Microsoft under investigation in Italy?

Italy’s AGCM is examining whether Activision Blizzard used “misleading and aggressive” commercial practices that may breach consumer protection rules in mobile games.

Q2: Which games are involved?

The investigations focus on Call of Duty Mobile and Diablo Immortal, two major free-to-play mobile titles that rely heavily on in-game purchases.

Q3: What is the concern around “loot boxes”?

Loot boxes are chance-based purchases that deliver random digital rewards. Regulators in multiple countries have raised concerns that these mechanics resemble gambling-like behaviour and can encourage excessive spending.

Q4: What could happen if violations are found?

AGCM may order corrective changes to sales practices and impose penalties under consumer protection rules.

Q5: Is this part of a broader European crackdown?

Yes. Regulators and policymakers across Europe have been increasingly focused on digital consumer protection issues, including monetisation systems in video games.