The DFA is "game over" for the European games industry

• The EGDF and VGE say the Digital Fairness Act is “unworkable, unjustified and disproportionate”.
• The organisations claim the European Commission has ignored their own proposals.
• The DFA would disable virtual currencies for minors and place restrictions on loot boxes.

The European Commission’s Digital Fairness Act is “game over” for the region’s games industry, claims a joint statement from the European Games Developer Federation and Video Games Europe.

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 the sale of paid in-game items and currencies disabled by default for minors.

The EGDF and VGE slammed the move as “unworkable, unjustified and disproportionate”.

“The draft would cripple the competitiveness of Europe’s world-leading video games industry and leave millions of European players with fewer games and less choice,” read a joint statement.

Surprise and disappointment

The organisations said these principles would make games unplayable. The organisations said their own proposals had not been considered by the Commission.

“The proposed prohibition of pay-to-win and pay-to-progress mechanisms as written is fundamentally flawed, lacks clear definitions and would create huge confusion for players and developers alike.

“In practice, the proposed prohibition could cover almost any purchase in a game. The same lack of clarity applies to provisions imposing other design restrictions. Under these proposals, no developer could be sure whether their game breaks the DFA’s rules, which, in the context of fines of up to 6% of global turnover, is not acceptable.”

The EGDF and VGE claimed that the industry has shown that self and co-regulation can work. They cited the PEGI age rating system, which now also rates in-game purchases and paid random items. Meanwhile, they said parents already have the ability to block or limit spending through parental tools on console, PC and mobile.

“By ignoring these efforts, the proposals risk fatally undermining industry-led innovation on safety not just in the games industry but in multiple other sectors.”

Questioning European competitiveness

The joint statement concluded by stating the industry has put forward concrete proposals to make games safer by design.

“Purchases and online communication would be switched off by default for children, and only a parent could switch them on. Players would see clear prices in real money, be able to get refunds for in-game currency they have not used and buy smaller top-ups so they don’t end up with more currency than they need.”

It added that overregulation is a competitiveness problem for studios in the region.

“Europe’s 8,700 companies, most of them small studios, will compete with one hand tied behind their backs against rivals outside the EU. That will have a devastating impact on a major European success story and on the millions of players who enjoy their games.”

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.

Industry regulation will be a keep topic covered at Pocket Gamer Connects London on January 18th and 19th. More information on the conference is available here.