Italian Competition Authority Launches Antitrust Investigation into Activision Blizzard, Targeting Mobile Game Monetization and Data Compliance

The Italian Competition Authority (AGCM) officially announced this week the initiation of two separate investigations into Activision Blizzard, a gaming company under the Microsoft Group. The focus is on two of its popular mobile games, Diablo Immortal and Call of Duty: Mobile. The regulator alleges that the company engaged in “misleading and aggressive commercial practices” during operation, potentially violating Italy’s Consumer Code, particularly regarding the protection of minors and user rights to information.

According to the statement released by AGCM, the investigations primarily revolve around the following core contentious issues:

1. Inductive Design and Non-Transparent Monetization Mechanisms
   The regulator points out that these two games, advertised as “free-to-play,” employ meticulously designed user interfaces and push notification strategies to continuously encourage players to extend gameplay time and stimulate spending. Specific tactics include frequent in-game and out-of-game pop-ups emphasizing “time-limited rewards” and the scarcity of “missed opportunities,” leveraging player psychology to create spending impulses. Furthermore, the complex in-game virtual currency systems and bundled sales strategies are alleged to deliberately obscure the value correspondence between real currency and virtual items. This may lead players—especially minors—to make substantial purchases without fully understanding the actual costs involved.
2. Inadequate Minors Protection Mechanisms
   The investigation focuses on the preset parental control systems within the games. AGCM believes the current settings default to lower protection levels (such as allowing in-app purchases, imposing no time limits, and enabling open social features) without requiring active setup and supervision by parents or guardians during the initial stages. This potentially exposes underage players to higher risks of spending and social interaction.
3. Doubts Over Data Acquisition and User Agreement Compliance
   AGCM has also raised concerns regarding the methods of data acquisition during game account registration. Preliminary findings suggest the user interface may guide players (including minors) to select all consent options—including authorization for user profiling for commercial purposes—leading them to mistakenly believe these choices are mandatory. Additionally, the investigation will assess whether the games adequately inform players of their contractual rights (such as cooling-off periods) and whether Activision Blizzard’s practice of unilaterally suspending accounts is reasonable, providing effective appeal and support channels.

In its statement, AGCM emphasized: “Given the higher risks of gaming addiction associated with the industry, companies bear a heightened duty of professional diligence. Activision Blizzard’s current practices may have deviated from the core requirements of consumer protection rules.”

As of now, Activision Blizzard and Microsoft have not issued a public response to this investigation.

This investigation also reflects the increasingly stringent regulatory environment in Europe. Just last month, AGCM imposed a fine of approximately €98.6 million on Apple for alleged abuse of market dominance. Analysis suggests that with the full implementation of the EU’s Digital Markets Act and Digital Services Act, national regulators across Europe are intensifying scrutiny over the monetization models, data ethics, and protection of minors in digital products. Global game companies are facing a new wave of compliance challenges in the European market.