Supercell CEO believes Digital Fairness Act will hurt consumers

Supercell CEO Ilkka Paananen, who last year proclaimed new EU policies risked killing Europe’s games sector, has said newly revealed proposals on the Digital Fairness Act will hurt consumers.

The European Union has published a draft proposal for the DFA, calling for changes to in-game currencies to more clearly state their value, disclose loot box odds and give users ability to turn off loot boxes - with all IAPs disabled by default for minors.

Supercell has been a champion of the free-to–play mobile space since launching Hay Day and Clash of Clans back in 2012, making billions of dollars in the years since. It’s become one of the region’s most successful gaming companies.

"Confusion, not clarity"

Paananen said while the European Commission promises to protect consumers with new regulations, the opposite will happen.

He claimed that by making it harder for players to buy something, there will be fewer free games on the market. Around 95% of Supercell’s monthly players play for free.

Paananen said the DFA will also move the decision-making on purchases for children from parents to the Commission. Meanwhile, he claimed the DFA takes a stricter approach than what is being proposed for social media, treating anyone under 18 the same as a child.

The Supercell CEO echoed his support from the European Games Developer Federation and Video Games Europe for an urgent rethink of the proposals. Those organisations labelled the regulation, as it stands, “unworkable, unjustified and disproportionate”.

“The proposal’s idea of transparency is a euro value on in-game currency once bought at the time a player wants to use it,” said Paananen. “But players buy currency at different prices, through bundles and offers, so any euro figure is a guess. That is confusion, not clarity.

“We share the Commission's goal: safe play, especially for kids. The industry has already proposed tools that work. Purchases off by default for children, and only a parent can switch them on. Clear real-money prices. Refunds for unused currency. Let's build on those.

“I support Video Games Europe and EGDF's call for an urgent rethink.”

We spoke with industry experts for their opinions on the DFA, who have also express their concerns about the proposals. UK games trade body UKIE has also weighed in on potential industry harms.