EU Digital Justice Act Could Change Game Monetization

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A proposal from the European Commission would restrict loot boxes and virtual currencies for minors, with possible repercussions for the global games industry.

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The European Commission has published its proposal for the Digital Fairness Act, legislation that could change how games are monetized worldwide. Although the proposal covers a broad range of digital products and services, it includes specific rules for loot boxes and virtual currencies in games.

The Digital Fairness Act is expected to become EU law between 2028 and 2029, following debate and possible amendments. Companies that break the rules could face fines of up to 6% of their annual global turnover, or up to 2 million euros if revenue data is unavailable.

Virtual currencies bought with real money would have to be disabled by default for players under 18, with a parent or guardian required to enable them. Paid loot boxes could not be offered to minors. The proposal would also require games to let any player turn off these rewards entirely and clearly see the odds of obtaining each item.

The changes could affect systems used in major console and mobile games. Games industry business expert George Osborn called the proposal a “very big” regulatory change and said companies such as EA, Xbox, Activision Blizzard and PlayStation have reason to be concerned.

One challenge will be identifying underage users and creating a “master switch” to block paid loot boxes. In card games built around randomized rewards, turning that feature off could require major design changes. The proposal could also affect modes such as Ultimate Team in EA Sports FC, though keeping that content in a separate mode may make age restrictions easier to enforce.

Existing parental controls may make virtual currencies easier to manage. Even so, the proposal requires an item’s price to be displayed in the local currency, even when it is purchased with virtual currency. That poses further challenges for games played across different countries and by people who move between regions with their devices.

With information from Eurogamer.

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