Italy Opens Probe Into Microsoft’s Gaming Monetization Tactics

Italy's competition authority has opened two separate investigations into Microsoft's Activision Blizzard unit, accusing the gaming company of using misleading and aggressive sales tactics to push in-game purchases in two of the world's most popular mobile games: Call of Duty Mobile and Diablo Immortal.

The Italian regulator, known as AGCM, said the company may be operating in ways that breach consumer protection laws and fail to meet professional standards required in an industry known for risks of gambling addiction.

Background

Activision Blizzard's mobile games have built massive audiences over the years. Both Call of Duty Mobile and Diablo Immortal have player bases in the hundreds of thousands and are among the world's most lucrative free-to-play titles. These games are advertised as free to download and play, but they rely heavily on in-game purchases to generate revenue.

Free-to-play games typically monetize through cosmetics, loot boxes, and virtual currencies rather than upfront purchase fees. Diablo Immortal, for example, offers in-game cosmetics and currency that allows players to accelerate progression, with some items priced as high as $200.

Italy has become increasingly strict about regulating real-money gaming practices. The country's rules around monetization are far more stringent than those in North America, and Italian regulators have grown more aggressive in scrutinizing how game companies target players, particularly young people.

Key Details

The AGCM's investigation focuses on several specific practices the company allegedly uses to push spending.

Design and Notification Tactics

Regulators are examining how Activision Blizzard uses game design elements to keep players engaged for long periods and encourage purchases. The company allegedly uses push notifications and in-app messages to pressure players into buying extra content both during and outside of active gameplay. These messages often emphasize missing out on limited rewards or time-sensitive offers.

"These practices, together with strategies that make it difficult for users to understand the real value of the virtual currency used in the game and the sale of in-game currency in bundles, may influence players as consumers — including minors — leading them to spend significant amounts, sometimes exceeding what is necessary to progress in the game and without being fully aware of the expenditure involved."

Virtual Currency Concerns

The AGCM is particularly concerned about how the games use virtual currencies. Players purchase these currencies with real money, but the connection between virtual spending and actual cost can be unclear. Regulators worry that this system allows players, including children, to spend far more than necessary to progress in the game without fully understanding how much real money they are spending.

Parental Controls and Player Rights

The investigation also examines the games' default parental control settings. According to the regulator, these settings currently allow minors to make in-game purchases, play for extended periods without limits, and communicate with other players in-game without proper safeguards.

Beyond parental controls, the AGCM found issues with how the games present information about player rights. The regulator claims that the way contractual terms are displayed leads players to unknowingly waive their legal protections. Additionally, the games offer limited options for players whose accounts are blocked to challenge the decision or recover money already spent on digital content.

Privacy and Consent Issues

Regulators also flagged concerns about how the games handle personal data. The AGCM said the games appear to lead users to select all consent options during sign-up, and the authority plans to investigate the company's consent process for collecting and using personal data.

What This Means

The investigations represent growing regulatory pressure on how major gaming companies monetize mobile games. As gaming has become a larger part of global entertainment, regulators worldwide have become more focused on protecting consumers from predatory practices, especially when children are involved.

For Microsoft and Activision Blizzard, the timing adds to a broader set of challenges. The gaming division has faced criticism from players about overmonetization in recent years, and the company has seen its console business lose ground to competitors.

The outcome of these Italian investigations could influence how other European regulators approach similar issues. Call of Duty and Diablo are among the world's most recognized gaming franchises, so any regulatory action could reshape how in-game purchases are handled across the entire industry.

Activision Blizzard has not yet responded to requests for comment on the investigations.