Italy’s competition watchdog has opened two formal investigations into Microsoft’s Activision Blizzard unit over how it monetizes Diablo Immortal and Call of Duty: Mobile, putting fresh regulatory pressure on Microsoft’s post‑acquisition gaming and mobile strategy. The probes focus on allegedly “misleading and aggressive” sales practices, including in‑app purchases, loot‑box‑style mechanics, push notifications, and the use of virtual currency that regulators say may exploit players, especially minors.
What Italy is investigating
Italy’s competition authority, the Autorità Garante della Concorrenza e del Mercato (AGCM), has opened two consumer‑protection investigations targeting Diablo Immortal and Call of Duty: Mobile, both free‑to‑play mobile titles operated by Microsoft’s Activision Blizzard unit. The watchdog argues that Activision Blizzard may be violating Italian consumer law through “misleading and aggressive” commercial practices that fail to meet the level of professional diligence required in a sector highly sensitive to gambling‑addiction risks.
AGCM’s statement highlights how players are pushed to purchase extra content via in‑game prompts and push notifications, including messages that encourage users to act quickly to avoid missing out on time‑limited offers and rewards. Although both games are marketed as free to play, regulators say their monetization systems are designed to increase playtime and spending, potentially leading consumers to spend more than is necessary for progression.
Loot boxes, virtual currency, and minors
At the heart of the probe are mechanics that look very close to loot boxes and gambling‑like systems, including randomized rewards and virtual currencies sold in bundles. AGCM says these designs can make it difficult for players to understand the real‑world value of the in‑game currency, especially when larger bundles and layered currencies obscure how much money is being spent.
The authority is particularly concerned about minors, warning that these tactics may influence younger players to spend “significant sums” without being fully aware of the financial impact. The regulator also criticizes default parental‑control settings, arguing that they offer a “low level of protection” by allowing in‑app purchases, long or unlimited play sessions, and wide‑open player interactions unless parents manually tighten controls.
Data collection, rights, and consumer protection
Beyond pure monetization, AGCM is also looking at how these games handle user data and contractual rights. Documentation from the authority and subsequent reporting say investigators will examine how consent for personal‑data processing is obtained and whether players clearly understand what they are agreeing to when they accept terms inside the apps.
Regulators are additionally probing whether information about players’ contractual rights is presented in a way that effectively leads users to waive protections without realizing it, for example when accounts are suspended and users lose access to purchased content with limited avenues for appeal. Microsoft’s Italian press office has not yet issued a detailed public response, and reports note the company did not immediately comment when asked.
These investigations are among the first high‑profile consumer‑protection cases to directly target Activision Blizzard under Microsoft’s ownership, following the roughly 75 billion dollar acquisition that closed in 2023. Italy’s watchdog explicitly links its concerns to the way a major global publisher designs free‑to‑play titles that reach large, often young, mobile audiences, underscoring that post‑merger scrutiny is not only about competition but also about how games are monetized.
For Microsoft, the stakes go beyond fines in a single EU market. Mobile growth and recurring revenue from in‑game purchases are central to the logic of the Activision acquisition, which brought Call of Duty Mobile and Diablo Immortal into the Xbox portfolio. Any ruling that forces changes to user‑interface design, virtual‑currency presentation, or parental‑control defaults in Italy could create pressure for similar adjustments across the EU and, over time, globally, raising compliance costs and reshaping how Microsoft structures free‑to‑play economies.
Xbox and mobile strategy
From an Xbox and mobile‑strategy perspective, the Italian probe lands at a delicate moment, as Microsoft tries to position itself as both a leader in high‑end console experiences and a major force in mobile and cloud gaming. Part of the value of Activision Blizzard for Microsoft lies in its ability to bring blockbuster franchises onto phones, supported by aggressive live‑service monetization, battle passes, and cosmetic DLC—exactly the areas regulators are now dissecting.
If AGCM pushes for stricter transparency around virtual currencies, clearer up‑front disclosure of likely spending, or stronger safeguards for minors, Microsoft may need to redesign core progression and reward loops in these games to remain compliant, potentially reducing short‑term monetization but strengthening long‑term trust. The case also signals to other regulators that user‑interface “dark patterns” in games are fair game for enforcement, which could influence how Microsoft approaches future Xbox, PC, and mobile titles that rely on similar mechanics.
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