Italy's antitrust authority has opened an investigation into Activision Blizzard, the Microsoft-owned gaming giant, over concerns that its monetisation practices in popular mobile titles such as Diablo Immortal and Call of Duty Mobile may constitute a “widespread infringement” of EU consumer protection rules. The probe, backed by consumer protection agencies in Norway and Denmark, focuses on the use of “loot boxes” and pay-to-progress mechanics that critics say exploit younger players.
EU-wide coordination
The Italian action is the first step in a broader EU initiative coordinated by the European Commission’s Consumer Protection Cooperation (CPC) Network, which announced in late September that it would target nine video game companies. Alongside Activision Blizzard UK Limited, the list includes Crytek GmbH, InnoGames GmbH, King.com Limited, Mojang AB, Plarium Europe S.à.r.l., PLR Worldwide Sales Limited, Riot Games Limited, Supercell Oy, and Ubisoft EMEA SAS.
Italy’s investigation is being watched closely by other member states, as it could set a precedent for how the bloc enforces consumer law in the digital gaming sector. If found in breach of the Italian Consumer Code, Activision Blizzard could face fines of up to 4% of its annual turnover in each affected country, according to the European consumer law framework.
Concerns over virtual currencies and child protection
At the heart of the Italian authorities’ concerns is the way the games use virtual currencies, which are purchased with real money and then spent on in-game items, benefits, and features. The authority highlighted a “lack of transparency and fairness in the use of virtual currencies,” particularly for children, who may not fully grasp the real-world cost of their in-game purchases or the addictive nature of such mechanics.
This investigation is part of a wider European and global push against tech companies over the impact of their platforms on young people’s mental health. In recent months, the European Commission unveiled a proposal for an EU Kids Act, which would require digital service providers to prove their platforms are “safe by design” and age-appropriate before children can use them. The proposal specifically targets video games, including a ban on loot boxes for minors, clear display of real-currency costs, and purchase alerts. It also aims to curb addictive behaviours by banning “streak” mechanics that encourage daily logins and notifications that push children to keep playing.
The CPC Network’s action follows an open dialogue with the video game industry last year, which the organisation said “did not bring satisfactory results,” particularly regarding monetisation and virtual currency practices.
Industry pushback and broader context
Game publishers have often defended such monetisation models by noting that their games are free to play and that spending is optional. In a July 2022 interview with the Los Angeles Times, Mike Ybarra, then head of Blizzard Entertainment, argued that the company “gives a free Diablo experience to hundreds of millions of people, where they can literally do 99.5% of everything in the game.”
However, many players have long complained about “pay-to-win” mechanics, where those who spend more gain an unfair advantage over more skilled but less wealthy players. This has led to growing frustration and calls for stricter regulation.
The EU is also expected to present a Digital Fairness Act later this year, which would ban “dark patterns” (manipulative designs and false urgency), unfair personalisation, and subscription traps. Michael McGrath, the EU’s consumer protection commissioner, said: “Roughly half of Europeans play video games… With that reach comes responsibility. The industry must ensure that its games do not expose players — especially children — to harmful or unfair practices. The game must be fair, and the rules must be respected. National authorities, with the support of the Commission, will make sure they are enforced.”
Italy’s move is the latest in a series of regulatory actions across the bloc. Earlier this year, the country’s antitrust authority also pursued other tech-related cases, reflecting a broader trend of European regulators taking a tougher stance on digital platforms. As the investigation unfolds, it could have significant implications for how video games are monetised across the EU, particularly when it comes to protecting younger consumers.
