The Competition and Markets Authority (CMA), a UK government department who strengthen business competition and prevent anti-competitive business actions, are investigating Microsoft, Sony, and Nintendo regarding the company’s online subscription services to determine how fair they are. Namely, how the subscription services get renewed, and the CMA plan to learn if what the companies are doing is legal.
The CMA is mostly interested in how the companies handle their auto-renewals, cancellations, refunds, and online terms and services.
Their investigation launches today. The CMA has reached out to the three companies, asking to learn more about their terms and agreements to understand their business practices better.
“Our investigation will look into whether the biggest online gaming companies are being fair with their customers when they automatically renew their contracts and whether people can easily cancel or get a refund,” said Andrew Coscelli, the chief executive for the CMA. “Should we find that the firms aren’t treating people fairly under consumer protection law, we are fully prepared to take action.”
If the CMA learns by the end of the inquiry the companies have broken any consumer protection laws, they plan to take action against those companies to amend those wrongs. The CMA did not detail how they plan to do so, though.