European gaming firms say new EU consumer rules will ‘cripple’ the industry

BRUSSELS — Top global gaming companies have blasted new EU consumer regulations they say would “cripple the competitiveness of Europe’s world-leading video games industry.” The European Commission unveiled a new set of rules Wednesday on consumer protection, including the Digital Fairness Act, that is part of the first-ever sector-specific limits on the video-game industry, alongside the EU’s mid-September regulation to protect children online. Under the proposed DFA, which still has to be negotiated with other EU institutions, video games would no longer be able to earn money by offering minors micro-transactions to advance in the game, known as pay-to-win or pay-to-progress.

There are also restrictions on “loot boxes,” which contain surprise virtual items that players can buy with real money. The law also stipulates that in-app virtual currencies must be turned off by default for under-18s.

The Commission says these practices encourage overspending, which is especially dangerous for vulnerable consumers like kids.