Italy Opens Dual Investigations Into Microsoft's Activision Blizzard Over Alleged Predatory Sales Tactics

Italy's competition authority (AGCM) announced dual investigations into Microsoft's Activision Blizzard division on Friday, alleging the gaming giant employed "misleading and aggressive" sales tactics. The probes mark the latest regulatory challenge for Microsoft since its $68.7 billion acquisition of Activision Blizzard in 2023, signaling heightened scrutiny of the tech giant's post-merger business practices.

While specific details of the alleged violations remain undisclosed, regulatory experts suggest the "misleading" component likely refers to potential deceptive marketing or unclear contract terms for games and in-game purchases. The "aggressive" characterization could indicate pressure tactics around subscription renewals, bundled services, or predatory monetization strategies targeting vulnerable players.

This action follows a pattern of European regulators intensifying oversight of gaming industry practices. Italy previously fined Apple €10 million for aggressive water-resistance claims and sanctioned Nintendo for unclear warranty terms. The dual-investigation approach suggests regulators are examining multiple facets of Activision's sales operations simultaneously.

Potential consequences could include fines up to 10% of Microsoft's global annual revenue under Italian competition law, mandatory changes to business practices, and compensation requirements for affected consumers. The timing is particularly notable as Microsoft integrates Activision franchises like Call of Duty into its Xbox Game Pass subscription service, raising questions about how subscription models might factor into the investigations.

Microsoft faces increased European regulatory pressure beyond gaming, including ongoing EU antitrust scrutiny of its cloud licensing practices and Teams bundling. The Italian probes demonstrate that national regulators remain active in enforcing consumer protection laws even as broader EU digital market regulations take effect.

Industry analysts note these investigations could accelerate standardization of clearer disclosure requirements for in-game purchases industry-wide. However, some legal experts caution that overly broad interpretations of "aggressive sales" might inadvertently restrict legitimate marketing practices. Microsoft has yet to issue a public statement regarding the investigations.

The outcome could influence ongoing global debates about microtransaction ethics and subscription fatigue in gaming, potentially prompting other regulators to examine whether industry giants leverage acquired intellectual property to create walled gardens with coercive monetization systems.