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. OTT Releases of the Week (Feb 16 - Feb 22): Know What to Watch This Weekend
  2. Realme P4 Lite With 6,300mAh Battery Launched at This Price in India
  3. Here's When Xiaomi Will Launch the Xiaomi 17 and Xiaomi 17 Ultra Globally
  4. Google Launches Gemini 3.1 Pro; Pomelli Updated With Photoshoot Feature
  5. Samsung Galaxy Buds 4 Leak Again as Dummy Units Surface Online
  6. Realme C83 5G Price Leaked; Here's How Much It May Cost in India
  7. Xiaomi Teases a New Computing Device, New Tablet Expected to Launch Soon
  8. Xiaomi 17T, Xiaomi 17T Tipped to Launch Four Months Earlier Than Usual
  9. Motorola Edge 70 Fusion India Launch Teased; Might Launch With This Chip
  10. Sony to Shut Down Demon's Souls Remake Developer Bluepoint Games
  1. Xiaomi Teases India Launch of New Computing Device; New Tablet With Keyboard or Laptop Expected
  2. Realme C83 5G India Price, RAM and Storage Configurations Leaked Online
  3. Xiaomi 17 Series Global Launch Date Announced; Xiaomi 17, Xiaomi 17 Ultra Expected to Debut
  4. Google Blocked 266 Million Risky App Installs, Prevented 1.75 Million Policy-Violating Apps in 2025
  5. Motorola Edge 70 Fusion India Launch Teased on Flipkart; Leaked Marketing Image Hints at Snapdragon 7s Gen 4 SoC
  6. Google Releases Gemini 3.1 Pro With Ability to Execute Complex Tasks; Pomelli Gets New Photoshoot Feature
  7. Xiaomi 17T Pro, Xiaomi 17T Tipped to Launch Earlier Than Previously Expected, Chipset Details Leaked
  8. Google Chrome Updated With Split View, Built-In PDF Markup Tools, and More Features
  9. Realme P4 Lite Launched in India With 6,300mAh Battery, 13-Megapixel Camera: Price, Specifications
  10. Samsung Galaxy Buds 4 Leak Again as Dummy Units Surface Online: Expected Price, Features
Gadgets 360 is available in
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2026. All rights reserved.