NextFin News - On January 16, 2026, Italy’s competition authority announced an investigation into Microsoft’s Activision Blizzard division concerning its sales practices for the video games ‘Call of Duty Mobile’ and ‘Diablo Immortal.’ The probe, conducted by Italy’s consumer protection and competition watchdog based in Milan, targets alleged "misleading and aggressive" marketing tactics that may violate consumer protection laws. The regulator specifically cited concerns over the use of in-app messages and push notifications that encourage players to purchase additional content during and outside gameplay sessions.
The investigation highlights the use of virtual currencies within these free-to-play games, which can be acquired either through real money or earned in-game. The watchdog warned that such mechanisms might lead consumers, including minors, to spend significant sums beyond what is necessary for game progression, often without full awareness of the financial implications. Additionally, the regulator criticized the default parental control settings and the presentation of contractual rights, which it claims may cause players to unknowingly waive protections. The lack of clear options to contest account suspensions, which can result in the loss of invested digital content, was also flagged as a consumer risk.
Microsoft’s Italian press office has not yet responded to requests for comment. ‘Call of Duty’ and ‘Diablo’ are among the most prominent franchises in the gaming industry, with millions of active users worldwide and substantial revenue generated from microtransactions and downloadable content.
This investigation comes amid growing global regulatory scrutiny of monetization practices in the gaming sector, particularly concerning the ethical use of microtransactions, loot boxes, and virtual currencies. Italy’s watchdog is emphasizing the need for professional diligence in a sector sensitive to gambling addiction risks, especially among younger players.
The causes behind this probe are multifaceted. The rapid growth of free-to-play mobile gaming models has shifted revenue generation heavily towards in-app purchases, often facilitated by virtual currencies. While this model democratizes access to games, it also introduces complex consumer protection challenges, including transparency of costs, informed consent, and safeguarding vulnerable users such as minors. Italy’s regulatory action reflects a broader trend in the European Union and globally to tighten oversight on digital consumer rights and gaming monetization.
The impact of this investigation could be significant for Microsoft and the wider gaming industry. Should the watchdog find violations, Microsoft may face fines, mandated changes to its sales and marketing practices, and increased regulatory scrutiny in other jurisdictions. This could accelerate industry-wide reforms in how games disclose costs, implement parental controls, and manage account suspensions. For consumers, enhanced protections could reduce the risk of inadvertent overspending and improve transparency.
From a market perspective, Microsoft’s Activision Blizzard unit reported revenues exceeding $15 billion in 2025, with mobile gaming contributing a growing share. The ‘Call of Duty’ franchise alone generated over $3 billion in digital content sales last year. Any regulatory constraints on monetization strategies could influence revenue trajectories and investor sentiment.
Looking forward, this investigation signals a continuing regulatory trend towards stricter governance of digital content sales, especially in sectors intersecting with gambling-like mechanics. Companies will likely need to adopt more transparent pricing models, robust parental controls, and clearer user rights disclosures. The gaming industry may also see increased collaboration with regulators to develop standards that balance monetization with consumer protection.
Moreover, U.S. President Trump’s administration, inaugurated in January 2025, has shown interest in digital market regulation, which could lead to complementary actions in the United States, further shaping global industry practices.
In conclusion, Italy’s probe into Microsoft’s sales practices for ‘Call of Duty’ and ‘Diablo’ underscores the evolving regulatory landscape confronting the gaming industry. It reflects heightened awareness of consumer vulnerabilities in digital ecosystems and the imperative for companies to align monetization strategies with ethical and legal standards. The outcomes of this investigation will likely influence future regulatory frameworks and industry norms worldwide.
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