What was announced
Italy's antitrust authority said on Thursday, October 8, that it had launched a probe into several Microsoft-owned video-game makers over their use of virtual currencies. The authority's own release says the action brings together consumer regulators from Italy, Denmark and Norway under the EU's Consumer Protection Cooperation (CPC) network. Italy is the lead authority.
The action is directed at Activision Blizzard UK Limited and other Microsoft group companies. Its legal test is whether a "widespread infringement" has occurred. Under Article 3(3) of Regulation (EU) 2017/2394, that means conduct capable of harming consumers in at least three countries covered by the network.
Reuters noted that the authority did not name the other Microsoft group companies involved, and that Microsoft was not immediately available for comment. I won't guess at which other studios or titles are included.
What regulators say is wrong with virtual currencies
Per the Italian authority's release, in-game purchases such as cosmetic upgrades and weapon upgrade packs are often priced in currencies other than euros. Its examples were platinum, globes and diamonds. Those purchases ultimately involve a payment in euros, either directly or indirectly through several layers of virtual currency.
The regulator links that to several other design practices:
- Selling virtual currency in fixed bundles.
- Dark patterns, meaning interface designs that nudge players toward spending.
- Inadequate parental controls.
- A lack of assistance when accounts are blocked.
Its argument is that together these make it hard for vulnerable players to track what they spend. That includes minors and people at risk of gaming addiction.
Why bundles and conversion layers matter
Say a sword costs 700 gems, and gems only come in packs of 500 and 1,000. You must buy the 1,000 pack, and 300 gems are left over. You can't tell the sword's real cost without doing sums, and the leftover gems nudge you to keep spending. This is a generic illustration of the mechanism, not a claim about any specific Microsoft game.
The EU's Key Principles on In-game Virtual Currencies are the regulatory yardstick here. They were adopted by the CPC Network,