Italy probes gaming giant Activision Blizzard over in-game spending by children

Italy's antitrust authorities have begun an investigation into Microsoft's gaming company Activision Blizzard, prompted by allegations of predatory monetization practices in their mobile games Diablo Immortal and Call of Duty Mobile, particularly targeting children and other players. The inquiry comes following public backlash and concerns from consumer protection authorities in Norway and Denmark.

The company, a major player in the gaming industry, is one of Microsoft's most recognized game publishers, with a portfolio including Call of Duty, Warcraft, StarCraft, and Diablo. Activision Blizzard was acquired by Microsoft in 2023 for a sum of $75.4 billion.

Should the company be found in violation of Italy's Consumer Code, it could face fines of up to 4% of its annual turnover within each affected country in line with European consumer law. This investigation is part of a broader EU-wide effort initiated by the European Commission's Consumer Protection Cooperation (CPC) Network, which aims to strengthen the protection of gamers' rights. The network will target nine video game companies with actions set to commence across the EU.

The Italian authorities are primarily concerned with the company's practices that may have targeted children who are more vulnerable to gaming addiction and may struggle to comprehend or control their spending, particularly due to the reliance on virtual currencies for purchases of in-game items, benefits, and features. Authorities have also highlighted the "lack of transparency and fairness in the use of virtual currencies" within the games.

This investigation is part of a larger movement at both European and global levels against tech companies for their negative impact on young people's mental health, particularly following a series of suicides linked to gaming. The European Commission recently proposed the "EU Kids Act," which aims to require digital service providers to prove that their platforms are "safe by design" and age-appropriate before children can access them.

The proposal specifically addresses video games, including a ban on loot boxes for children, transparency of real currency costs for in-game purchases, and bans on addictive features like "streak" mechanics and notifications that encourage prolonged play.