Apple, Google in Trouble for Advertising Games With In-App Purchases as Free

Advertisement
By Reuters | Updated: 6 July 2014 13:44 IST
U.S. tech giants Apple, Google and Amazon and French game developer Gameloft are under investigation in Italy for alleged unfair commercial practices, the country's antitrust and competition authority said.

The investigation will determine whether the four companies are misleading customers by advertising mobile game apps as free, when in fact purchases are required to continue playing beyond a certain point, the regulator said in a statement.

"Consumers could wrongly believe that the game is entirely free and, in any case, that they would know in advance the full costs of the game," the antitrust watchdog said.

"Moreover, insufficient information seems to be provided to consumers about the settings needed to stop or limit the purchases within the app."

Advertisement

Apple declined to comment while Gameloft said it was looking into the issue but had no other comment. Google and Amazon could not immediately be reached for a reaction.

A spokeswoman at the authority said the investigation would likely be concluded within seven to eight months. The maximum fine it could impose on each of the companies would be 5 million euros ($6.9 million), she added.

Advertisement

The investigation follows a similar move by the European Commission earlier this year which asked companies to revise their rules on apps that are advertised as free and can be downloaded at no cost, but which later require purchases that get charged to consumers' credit cards by default.

(Also see: Top EU official is no fan of 'freemium' model, in-app purchases)

According to the Commission, more than half of the mobile games available in the European Union are advertised as free downloads, and consumers, especially children, are not always aware of costs that can be incurred and are vulnerable to the misleading marketing.

Advertisement

© Thomson Reuters 2014

 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Further reading: Amazon, Apple, Apps, Gameloft, Gaming, Google, Freemium
Advertisement

Related Stories

Popular Mobile Brands
  1. Sony's Year-End Holiday Sale on PS5 Accessories, Games Kicks Off Next Week
  2. OTT Releases This Week: Thamma, Mrs Deshpande, Raat Akeli Hai The Bansal Murders, and More
  3. Instagram Will Now Restrict the Number of Hashtags You Can Use
  4. Oppo Reno 15 Pro, Reno 15 Pro Max Global Variants Surface on Geekbench
  5. Google's Pixel Upgrade Program Lets You Get the Latest Model Every Year
  6. Here's How Much The Redmi Note 15 5G Could Cost in India
  7. OpenAI Is Willing to Nerf Its AI Models to Prioritise Teen Safety
  8. Naughty Dog Working Overtime as Intergalactic Targets Mid-2027 Launch: Report
  1. Astronomers Observe Black Hole Twisting Spacetime for the First Time, Confirming Einstein’s Theory
  2. Hubble Captures Rare Collision in Nearby Planetary System, Revealing Violent Planet Formation
  3. Scientists Rule Out Elusive Sterile Neutrino After 10-Year Hunt, Shaking Particle Physics
  4. NASA’s PUNCH Mission Provides First Continuous Views of Solar Eruptions Across Space
  5. Starlink Satellite Breaks Apart in Orbit, Begins Uncontrolled Fall Toward Earth After SpaceX Anomaly
  6. Four More Shots Please Final Season Out on Prime Video: Know Everything About This Show For One Last Time
  7. Godday Godday Chaa 2 Now Streaming Online: A Powerful Punjabi Comedy with Social Satire
  8. Pharma Streaming Now on JioHotstar: Everything You Need to Know About This Thought-Provoking Drama Online
  9. Mrs. Deshpande Now Streaming Online: A Powerful Drama Exploring Identity, Marriage and Strength
  10. Adobe Partners With Runway to Offer Firefly Users Early Access to Video Generation Models
Gadgets 360 is available in
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2025. All rights reserved.