Italian regulator probes Activision Blizzard over in-game sales

Italy’s competition regulator, the Autorità Garante della Concorrenza E Del Mercato (AGCM), has launched two investigations into the video game company Activision Blizzard regarding its sales practices. The inquiries focus on the sales practices for two of the company’s smartphone games, Diablo Immortal and Call of Duty Mobile. The regulator alleges that Activision Blizzard has engaged in “misleading and aggressive” sales practices. Specifically, the AGCM is investigating whether the games use design elements to induce users, particularly children, into playing for long periods, and make in-game purchases by urging them to not miss out on rewards.

The AGCM is examining whether the company is acting in breach of consumer protection rules. The regulator raised concerns over how virtual currency is bundled and how these strategies obscure the real cost of in-game transactions. According to the AGCM, these practices, together with strategies that make it difficult for users to understand the real value of the virtual currency used in the game, may influence players—including minors—leading them to spend significant amounts without being fully aware of their actual expenditure. For instance, Diablo Immortal and Call of Duty Mobile are advertised as free-to-play but offer in-game purchases. In Diablo Immortal, players can buy in-game cosmetics, as well as currency to accelerate progression and gain items for crafting, for as much as $200. The regulator stated, “In the Authority’s view, the company may be acting in breach of consumer protection rules and, in particular, the duty of professional diligence required in a sector that is particularly sensitive to the risks of gaming-related addiction.”

The investigations also target the games’ parental control features and consent processes for data harvesting. The AGCM noted that the default settings on these games allow minors to make in-game purchases, play for long periods without restraints, and chat with other players in-game. Additionally, the regulator is looking into privacy concerns, examining whether the games appear to lead users to select all consent options when signing up. The AGCM will also look into the company’s consent process for harvesting and using personal data. Both Diablo Immortal and Call of Duty Mobile have player bases in the hundreds of thousands of users.

Why it matters

This investigation highlights the growing regulatory scrutiny on mobile gaming monetization models, specifically regarding how “free-to-play” games target minors and obscure the real cost of virtual currency.