What's Happening?
Italy's competition regulator, Autorita Garante della Concorrenza E Del Mercato (AGCM), has initiated two investigations into Activision Blizzard, a subsidiary of Microsoft, over claims of 'misleading
and aggressive' sales practices in its smartphone games, Diablo Immortal and Call of Duty Mobile. The AGCM is scrutinizing the use of design elements that allegedly encourage users, particularly minors, to engage in prolonged gameplay and make in-game purchases. These practices reportedly include strategies that obscure the real value of virtual currency and promote the sale of in-game currency in bundles, potentially leading players to spend more than necessary without full awareness of their expenditures. The games, advertised as free-to-play, rely on in-game purchases for monetization, a common model in the gaming industry. The AGCM is also examining the games' parental control features, which currently allow minors to make purchases and interact with others without restrictions. Additionally, privacy concerns have been raised regarding the consent process for data collection.
Why It's Important?
This investigation highlights significant concerns about consumer protection, particularly for minors, in the gaming industry. The outcome could influence regulatory approaches to in-game purchases and parental controls, potentially leading to stricter guidelines and enforcement. If the AGCM finds Activision Blizzard in violation of consumer protection laws, it could result in fines or mandates to alter their business practices, impacting the company's revenue model. This case also underscores the broader issue of digital consumer rights and the ethical responsibilities of gaming companies in protecting vulnerable users from exploitative practices. The findings could set a precedent for other countries to follow, potentially leading to a global reevaluation of how in-game purchases are regulated.
What's Next?
The AGCM will continue its investigation into Activision Blizzard's practices, focusing on the impact of their design elements and consent processes. Depending on the findings, the regulator may impose penalties or require changes to the games' features to enhance consumer protection. Activision Blizzard's response to these allegations and any subsequent regulatory actions will be closely watched by industry stakeholders. Other gaming companies may also preemptively adjust their practices to avoid similar scrutiny. The case could prompt discussions among policymakers about the need for updated regulations to address the evolving digital marketplace, particularly concerning the protection of minors.
