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Nexon faces hefty fines for alleged deceptive practices on in-game items

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 Market Surveillance Department Director of Fair Trade Commission (FTC) Kim Jung-ki speaks at the Government Complex Sejong's FTC briefing room, Sejong, Jan. 3. Yonhap

Market Surveillance Department Director of Fair Trade Commission (FTC) Kim Jung-ki speaks at the Government Complex Sejong's FTC briefing room, Sejong, Jan. 3. Yonhap

The antitrust regulator said Wednesday it has decided to fine Nexon Korea 11.6 billion won ($8.85 million) for alleged deceptive business activity against game users regarding in-game items.

The game giant was accused of changing the probability of randomized items for its hit titles of "MapleStory" and "Bubble Fighter" to the disadvantage of users multiple times from 2010 through 2021, and failed to notify the customers of the fact in violation of the Electronic Commerce Consumer Protection Act.

In August 2011, Nexon even made a false announcement about the modification, saying no changes to the items program had been made, according to the Fair Trade Commission (FTC).

The fine against Nexon was the largest-ever amount that the regulator has levied for violators of the act so far.

"Nexon made announcements about changes to the games hundreds of times from 2010-21, but it omitted the information about the probability adjustment," the regulator said. "Our judgment is that the company had aimed to lure customers by giving them false information and used deceptive means," it added.

The game company's sales from "MapleStory" came to 560 billion won in 2020, and some 28 percent of the annual sales came from the in-game item program, according to the FTC data.

Nexon said it accepts the FTC's decision, adding that it "deeply apologizes to the game users for disappointing them."

But it will consider challenging the regulator's decision or taking the case to court as the company's explanation has not been fully taken into account, claiming gaming publishers were not required to disclose the information about probability at the time.

"'MapleStory' is an iconic K-game that has been enjoyed by 190 million cumulative members in more than 110 countries around the world for 20 years," the company said. "It is difficult to predict the damage that the FTC's retroactive action will cause to Korean game companies in the highly competitive global content market." (Yonhap)



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