Key information
The European Commission, through the Consumer Protection Cooperation (CPC) Network, has initiated coordinated actions targeting the online gaming industry. The primary objective is to mandate transparency regarding the actual cost of digital items and to eliminate deceptive practices involving virtual currencies.
Regulators are scrutinizing systems that utilize intermediate virtual currencies, such as gems or gold coins, which decouple real-world spending from digital purchases. Research, including a 2023 study by the International Gaming Research Unit, suggests these "double currency conversions" create a psychological disconnect that makes spending easier for consumers.
The CPC Network is calling on companies, including Activision Blizzard, Riot Games, Ubisoft, and Supercell, to review their monetization practices. The commission warns that it will pursue joint enforcement measures if companies fail to comply with European Union consumer protection legislation.
Special attention is being directed toward variable reward systems like loot boxes, particularly those accessible to minors. It remains to be seen whether industry players will voluntarily adjust their models or if the European Commission will need to implement a formal legislative framework to restrict these practices.
