Italy probes Activision Blizzard over predatory in-game monetization tactics

Italy's competition authority (AGCM) has initiated twin investigations into Microsoft-owned Activision Blizzard, targeting monetization systems in Diablo Immortal and Call of Duty Mobile. The regulator alleges these free-to-play games employ psychologically manipulative design patterns that constitute "misleading and aggressive" commercial practices under EU consumer protection law. This represents a significant escalation in regulatory scrutiny of game mechanics that exploit behavioral psychology for revenue generation.

The core allegations focus on three interconnected systems: First, the use of urgency mechanics and fear-of-missing-out (FOMO) triggers that pressure players into extended sessions and impulsive purchases. These include time-limited offers, countdown timers on virtual items, and progression systems that imply disadvantage if rewards aren't claimed immediately. Second, the games obscure real-money equivalency by using intermediate virtual currencies (like Eternal Orbs in Diablo Immortal) sold in non-intuitive bundles ($100 packs being most common), making cost-per-item calculations deliberately opaque. Third, default parental control settings allow minors unrestricted spending and gameplay duration while enabling unfiltered communication channels.

Diablo Immortal's monetization structure exemplifies these concerns. Its endgame progression relies heavily on acquiring Legendary Gems through Elder Rifts, which require Crests purchasable with Eternal Orbs. The most powerful gems have drop rates below 1%, creating a lottery system where players might spend hundreds attempting to upgrade gear. The $200 bundle option accelerates this progression substantially but creates disproportionate advantage for paying players. Call of Duty Mobile similarly pushes cosmetic bundles and weapon blueprints through daily login rewards and limited-time events.

What distinguishes this investigation from prior regulatory actions against loot boxes is its focus on systemic design exploitation rather than isolated mechanics. The AGCM specifically cites professional diligence obligations under EU's Unfair Commercial Practices Directive, arguing Activision failed to account for gaming addiction risks despite operating in a "particularly sensitive" sector. This represents a novel application of consumer law to continuous engagement loops rather than discrete transactions.

The investigation also examines privacy violations through deceptive consent flows. Both games allegedly default to requesting maximum data permissions during onboarding, with interface designs nudging users toward accepting all tracking options. This combines with spending systems to create dual exploitation vectors: psychological monetization pressure and data harvesting without meaningful consent.

Practical implications extend beyond Italy. If upheld, findings could force restructuring of core monetization systems industry-wide, including: Clear real-money conversion displays for virtual currencies, elimination of non-linear currency bundles ($5, $10, $20, $100), mandatory spending caps for minors, and redesigned consent flows. Activision Blizzard faces potential fines up to 5% of global turnover under Italy's consumer protection statutes.

However, regulatory limitations exist. Enforcement remains nationally fragmented despite the EU's Digital Services Act, and technical implementation of age verification remains inconsistent. The complaint doesn't address fundamental reward structure issues like Diablo Immortal's pay-to-progress endgame, focusing instead on transactional transparency. Without coordinated global action, publishers may simply geo-fence restrictive mechanics.

This case signals regulators evolving beyond loot box regulation toward scrutinizing entire engagement economies. As Italy's probe progresses, it will test whether consumer protection frameworks can effectively constrain behavioral design patterns optimized over decades of free-to-play refinement.