Microsoft-Owned Activision Blizzard Faces EU-Backed Probe in Italy Over Virtual Currencies and In-Game Spending

Microsoft’s gaming business is facing fresh regulatory scrutiny in Europe, and this time, virtual currencies are at the center of the controversy. Italy has launched an EU-backed investigation into Activision Blizzard and other Microsoft-owned gaming companies over concerns about transparency and consumer spending.

Italy targets Microsoft’s gaming business over virtual currency concerns

According to a Reuters, Italy’s antitrust authority is investigating how Microsoft-owned game makers use virtual currencies. The investigation aims to determine whether their practices could violate European consumer protection rules.

For the uninitiated, virtual currencies let players purchase cosmetic upgrades, weapon enhancements, and other digital items. However, these purchases often require players to convert real money into virtual currencies before spending it inside games. Speaking of which, Italy’s competition watchdog says multiple conversion layers can make it difficult for players to understand their actual spending. Buying currency in predetermined bundles can further complicate matters, especially for younger and vulnerable consumers.

The Italian Competition Authority will lead the coordinated action alongside consumer protection authorities in Norway and Denmark. Regulators will investigate whether the alleged practices constitute a widespread infringement affecting consumers across at least three EU member states.

Diablo Immortal and Call of Duty Mobile were already under investigation

Notably, this is not Microsoft’s first regulatory headache over its mobile games. Italy opened separate national investigations in December into Diablo Immortal and Call of Duty Mobile, both published by Activision Blizzard. According to the Italian Competition Authority’s earlier investigation, regulators raised concerns about potentially misleading purchase prompts, aggressive commercial practices, and consumer rights.

In September, the EU’s Consumer Protection Cooperation Network launched coordinated actions involving nine other gaming companies, including Ubisoft, Riot Games, and Supercell. Speaking of the Activision case, the investigation does not establish that Microsoft or its gaming companies have violated consumer protection laws. Only time will tell what the outcome of the investigation will be.

Microsoft is continuing to strengthen its PC gaming strategy, with Xbox CEO Asha Sharma outlining bigger plans for PC gaming and Battle.net. At the same time, the company is working on a redesigned Xbox PC app that promises significant performance improvements.