Supercell boss Ilkka Paananen and King president Todd Green have hit back at the EU’s Digital Fairness Act, which the European Commission formally proposed on November 11.
The published proposal largely matches the leaked draft we reported on earlier this week. Paid-for virtual currencies would be switched off by default in games aimed at minors unless a parent approves, and loot boxes and pay-to-win mechanics would be banned for minors.
Games would also have to show the real-money value of virtual items, and let all players switch off loot boxes and addictive design features. In large-scale cases, the Commission would be able to fine companies up to 6% of their worldwide annual turnover.
The statements follow trade bodies Video Games Europe and the European Games Developer Federation calling the proposal “unworkable, unjustified and disproportionate”, and warning that it would be “game over for the European games industry”.
Supercell CEO Ilkka Paananen, who warned last year that tighter rules on in-game currencies could “deliver a critical blow” to the European games business, said in a LinkedIn post that the DFA “promises to protect European consumers. I believe it would hurt them.”
He said around 95% of Supercell’s monthly players play for free, and that making it harder for the minority who pay means “there are fewer free games for everyone.”
He also argued that the proposal “treats any game rated below Pegi 18 as aimed at children”, and that showing a euro value for in-game currency doesn’t work because players buy it “at different prices, through bundles and offers, so any euro figure is a guess. That is confusion, not clarity.”
King president Todd Green said on LinkedIn that parts of the proposal “add further uncertainty rather than resolving it”, and that companies “will struggle to determine whether ordinary features, such as in-game currency, optional purchases or progression mechanics, fall within scope.”
“This matters, particularly for Europe’s mobile games sector, made up of more than 1,000 dedicated studios, many of them small and independent businesses, that will need to face the dramatic consequences of these proposed changes,” said Green.
UK trade body Ukie has also backed Video Games Europe’s position. In a statement shared with PocketGamer.biz, it said: “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 described Pegi as “recognised by parents worldwide as a gold-standard in age rating for games”, adding: “If implemented as proposed, the DFA will directly undermine the value and effectiveness of this system.” It has also urged the UK government to “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.”
Consumer protection commissioner Michael McGrath described the DFA as “the most ambitious reform of EU consumer protection rules in a generation”, and the Commission says it will save EU consumers up to €13.7bn a year. The proposal will now be discussed by the European Parliament and Council.
King and Supercell were among the companies named in coordinated action launched by the EU’s Consumer Protection Cooperation Network in September over how they sell in-game currencies.
