UKIE warns EU Digital Fairness Act could harm UK games industry and parental choice

• UKIE has expressed concerns about the Digital Fairness Act and its potential impact on the UK and European games industries.
• The organisation warns that blanket restrictions could undermine parental choice and the PEGI age-rating system.
• UKIE has urged the UK government to consider the implications for developers and trade with Europe.

UK games industry trade body UKIE has warned that the European Commission’s proposed Digital Fairness Act could undermine parental choice, increase costs for developers and weaken the UK’s games industry.

In a statement shared with PocketGamer.biz, UKIE backed the position of European trade body Video Games Europe and expressed its concerns about the potential consequences of the legislation for players, parents and games businesses. 

The comments follow the official publication of the European Commission's proposal today, November 11th, after an earlier draft was leaked. 

The leaked draft outlined restrictions on paid loot boxes, pay-to-win and pay-to-progress mechanics for minors. It also mentioned new requirements around virtual currencies and design features that could encourage excessive engagement. 

Concerns over parental choice

UKIE said the games industry was committed to safe and responsible play, but also noted that parents should keep control over decisions that affect their children's gaming experience.

"We are particularly concerned about undermining parental agency by placing blanket restrictions on certain features, rather than giving parents the ability to make decisions based on individual circumstances."

UKIE also questions the potential economic impact of the proposals, especially for developers operating across the UK and Europe. 

"We are also concerned about implications for Europe’s competitiveness and constraints on the UK’s trade relationship with Europe. Europe needs a regulatory environment that encourages investment, innovation and growth. Introducing broad, ambiguous and unevidenced restrictions risks adding unnecessary compliance costs and making Europe less competitive internationally."

Existing player protections

UKIE went on to highlight the industry’s work with governments and regulators to improve player safety, including the PEGI age-rating system.

"The video games industry has been proactive in working with Government and regulators to develop effective measures to address player safety, including through the introduction of the PEGI ratings system – recognised by parents worldwide as a gold-standard in age rating for games. If implemented as proposed, the DFA will directly undermine the value and effectiveness of this system."

The organisation concluded by calling on the UK government to consider the wider implications of the proposals. 

"We urge the UK government to consider these implications carefully and resist following an approach that risks limiting player choice, harming parents’ ability to choose the right options for their children, creating uncertainty for developers and weakening the UK’s export capability."

The statement follows concerns raised by other games industry representatives about the potential impact of the DFA on monetisation, the free-to-play model and smaller game developers.