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Microsoft loses Brazilian court case after telling hacked Xbox user to re-purchase games — tech giant ordered to restore Xbox account with all games and pay $400 in damages
Tom's Hardware • • technology
Key Points:
- A Brazilian gamer known as Ordo_Liberal won a small-claims court order compelling Microsoft to restore his suspended account and all associated digital games after the company permanently suspended it for alleged unauthorized access despite two-factor authentication being enabled.
- Microsoft had informed the user that the suspension was permanent and advised repurchasing the games, but the court ruled in favor of the user, giving Microsoft 15 days to reinstate access or face fines and damages of approximately $400 (R$2,000).
- The suspension affected the entire Microsoft account, which includes Xbox purchases, Windows licenses, Microsoft 365, and OneDrive data, highlighting risks for users with large digital libraries tied to single accounts.
- Brazil's Consumer Defense Code allows individuals to pursue such cases without legal fees or court costs, enabling Ordo_Liberal to challenge Microsoft without incurring expenses; however, this ruling is limited to one jurisdiction and is not binding precedent.
- This case contrasts with legal approaches in other countries, where game accounts are often treated as licenses rather than owned property, and comes amid industry shifts away from physical media toward digital entitlements by companies like Microsoft and Sony.
