Online game companies investigated over in-game purchases

Nine online gaming companies - including the makers of Candy Crush, Minecraft, and Clash of Clans - are being investigated by European consumer authorities, including the Competition and Consumer Protection Commission, for potential breaches of consumer-protection law.

The action is looking into in-game purchases, in-game virtual currencies, consumer rights when making purchases, transparency around costs, and the fairness of terms and conditions.

The companies under investigation include: Crytek GmbH, InnoGames GmbH, King.com Operations (Malta) Limited, Mojang AB, Plarium Europe S.à.r.l., PLR Worldwide Sales Limited, Riot Games Limited, Supercell Oy, and Ubisoft EMEA SAS.

Games owned by these companies and now under scrutiny include 'Hunt: Showdown 1896', Forge of Empires, Candy Crush Saga, Minecraft, Mech Arena, Gardenscapes, Valorant, Clash of Clans and For Honor.

The investigation is looking at a number of issues - including if consumers are able to easily understand the real-world cost of in-game purchases and virtual currencies, and if the use of virtual currencies or currency exchanges make prices difficult to understand.

Other aspects of the probe are aimed at ensuring consumers do not feel forced to buy excessive amounts of in-game virtual currencies to progress or enjoy a game, that they should receive clear information before making any purchase, and that they are informed about their rights to withdraw from contracts within 14 days - including for unused virtual currency.

Consumer authorities are also looking at whether the games include appropriate safeguards for children and other vulnerable consumers.

The investigation is being co-ordinated by the European Commission's Consumer Protection Cooperation (CPC) Network.

Last year, the CPC Network entered talks with federations representing the global video games industry over the need for greater transparency and fairness in the use of in-game currencies.

Following this, the network carried out a large-scale market check and identified several games requiring further action.

Separately, the CPC Network is also engaging with Activision Bizzard UK Ltd (part of the Microsoft group) regarding two games: Diablo Immortal and Call of Duty.

This action relates to the sale of virtual currencies, how personal data is collected, potentially addictive designs, parental controls, direct marketing to children, the availability of pre-contractual information and the blocking of gaming accounts.

Commenting on the actions, CCPC Commission Member Geoffrey Gray said: "Millions of consumers across Europe play video games many of which are children. Consumers should be able to enjoy these games without being misled about costs, pressured into making purchases, or left unclear about their rights.

"This investigation is focussed on ensuring consumers are given clear information, treated fairly, and properly protected when spending money in games.

"The CCPC will continue to lead alongside our European consumer colleagues to make the online gaming space a safer and more transparent space for all," he added.