Competition watchdog investigates gamers’ contracts

THE UK’S competition watchdog has launched an investigation into whether Nintendo, Playstation and Xbox are breaking the law by automatically renewing users’ contracts.

The Competition & Markets Authority said it was “concerned about whether some of these companies’ business practices are legal”, such as whether customers are clearly told their memberships will renew or whether auto-renewal is set as a default option. Gamers can buy any of the consoles and choose not to pay for an online membership, but this means they often cannot play with other players online or access certain features of their games.

All three of the leading gaming companies: Nintendo, Playstation and Xbox, also allow users to download various games online as part of their membership and get access to demos of games before other people.

Andrea Coscelli, the chief executive of the watchdog, said it was ready to “take action” if companies were found to be treating customers unfairly under consumer protection law.

“Rollover contracts are becoming more and more commonplace and it’s essential that they work well for customers,” he said.

Playstation owner Sony did not respond to requests for comment. Nintendo said it was the company’s “firm belief that all our business practices are fair and compliant with relevant regulations and legislation, and therefore we look forward to co-operating fully with the CMA’S requests for information”. A spokesman for Microsoft, the owner of Xbox, said: “We have received a notification from the CMA and will be co-operating fully with their investigation.”

Meanwhile, the European Commission yesterday said it had found six video game companies in breach of EU rules, by using “geoblocking”, which prevented customers from buying games in other countries.