Italy Probes Activision Blizzard Mobile Game Sales

Key Investigation Details

Italy’s competition authority has initiated two investigations into Microsoft's Activision Blizzard unit. The inquiry focuses on alleged "misleading and aggressive" sales practices related to the popular mobile games "Diablo Immortal" and "Call of Duty Mobile."

Overview of the Situation

According to the Italian regulator, Activision Blizzard is suspected of violating consumer protection laws and failing to adhere to professional standards. The authority highlighted concerns that the company's monetization methods exploit a sector with known risks of gambling addiction, marking a significant step in consumer rights enforcement in the digital gaming space.

Economic and Market Impact

This investigation aligns with increasing global regulatory scrutiny of monetization in the mobile gaming industry. A ruling against Activision Blizzard could result in substantial fines and necessitate changes to its in-game purchasing models within the EU. This event may introduce short-term volatility for Microsoft's stock (MSFT) as investors assess the potential financial and reputational risks.

Summary

The probe places Activision Blizzard's lucrative mobile gaming operations under a microscope in a key European market. The outcome will be closely watched by the industry, as it could set a precedent for future regulation of in-game monetization. Key factors to monitor include official statements from the company and the timeline of the investigation.

FAQ

Q: Which company is under investigation in Italy?
A: Microsoft's Activision Blizzard unit is the subject of the investigation.

Q: Which games are specifically mentioned in the probe?
A: The investigation targets the sales practices of "Diablo Immortal" and "Call of Duty Mobile."

Q: What is the main allegation?
A: The core allegation is the use of misleading and aggressive commercial practices that potentially violate consumer protection legislation.

Source: Investing.com