Wednesday, October 14Global edition

Italy leads EU probe into Microsoft gaming studios over virtual currencies

Regulators in Italy, Norway and Denmark are examining whether Activision Blizzard, King and Mojang broke EU consumer-protection rules. The inquiry focuses on in-game currencies, dark patterns and parental controls, with minors among those at risk.
Microsoft and Activision Blizzard logos, whose gaming studios are under EU consumer-protection investigation over in-game virtual currencies.
Photo by BoliviaInteligente on Unsplash
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Italy’s antitrust authority has opened a probe into Microsoft-owned video-game makers, including Activision Blizzard, King and Mojang, over their use of virtual currencies. The authority said on Thursday that it had launched the investigation as a special mission targeting Microsoft’s game studios.

The investigation has been sanctioned by the European Commission. Its stated aim is to “promote transparency and fairness to protect the rights of consumers playing video games, particularly minors.”

Italy’s authority will lead the coordinated work with counterparts in Norway and Denmark. The regulators will examine whether the companies may have committed a “widespread infringement” of EU consumer-protection rules affecting consumers in at least three EU member states.

The case sits within a wider initiative of Europe’s Consumer Protection Cooperation Network, which coordinates enforcement authorities. Ten companies have been identified in that effort: Activision Blizzard UK, Crytek, InnoGames, King.com, Mojang AB, Plarium Europe, PLR Worldwide, Riot Games, Supercell and Ubisoft EMEA.

The CPC Network began actions last month against nine video-game companies, including Riot Games, Ubisoft and Supercell.

The central concern is how games turn real-money spending into purchases made through fictional currencies. The Italian Competition Authority has raised concerns about “a lack of transparency and fairness in the use of virtual currencies within games” by Microsoft group companies.

Players may encounter currencies called “platinum”, “globes” or “diamonds”, which must be bought with Euros or similar fiat currency. Purchases are often shown in virtual currencies rather than euros, and can involve several stages of conversion.

The European Commission has described the purchases at issue as “cosmetic upgrades” and “weapon upgrade packs.”

The initiative also covers alleged dark patterns, inadequate parental controls and insufficient help for players whose accounts are blocked. It is intended to address risks for vulnerable consumers, including people who may be at risk of developing gaming addictions.

Italy’s authority had already opened national investigations in December into certain Microsoft group companies in connection with Diablo Immortal and Call of Duty.

The regulator also described those December inquiries as concerning the games Diablo Immortal and Call of Duty Mobile.

Microsoft was not immediately available for comment.

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Julian HaleTech

Julian Hale covers corporate power and the people who wield it — boardrooms, deals, and the money moving behind the headlines. Meticulous, well-sourced, and hard to impress with a press release.

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