The European Commission is preparing a new regulation on digital equity. In its sights, virtual currencies used in mobile games like Candy Crush, Clash of Clans or Subway Surfers. An initiative which worries the major European players in the sector, who fear consequences on their competitiveness.
When you download Candy Crush or Clash of Clansyou generally pay nothing. The game is free. This is what we call the “free to play” model. “, literally “free to play”. Unlike console or computer video games, which are often sold for several tens of euros to purchase, mobile game publishers attract hundreds of millions of players without asking them to pay upfront. So how do they make money? Partly thanks to advertising, but mainly thanks to a small portion of players who make purchases directly in the game. These purchases often take the form of gems, virtual coins, bonuses or even special characters. The player spends real money to acquire these virtual currencies, which he then uses to progress more quickly or unlock certain content.
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Why is the European Commission interested in virtual currencies?
This is precisely where the problem lies in the eyes of Brussels. In many mobile games, the player does not directly spend euros or dollars. He spends a virtual currency purchased in advance. The question posed by the European Commission is simple: does the player always understand what he is really spending?
If an object costs 5 euros, the price is immediately understandable. But if it costs 700 gems obtained in a pack of 1,200 gems purchased for 5 euros, the perception of the expense becomes much less intuitive. And when several virtual currencies coexist in the same game, the situation can become even more complex. With its “Digital Fairness Act” project, the European Commission wants to examine these practices and strengthen price transparency. The stated objective is to better protect consumers, particularly the youngest, who are particularly present in this type of games.
Publishers fear a threat to their competitiveness
This prospect greatly worries the mobile video game industry. In the columns of Financial Timesthe leaders of several major European studios expressed their concerns. According to them, certain measures could lead to the appearance of messages or reminders intended to contextualize the expenses made by players, at the risk of degrading the user experience. But their concerns go beyond the simple question of playing comfort.
Industry officials point out that mobile gaming is one of the rare digital sectors in which Europe can still claim a world leadership position. According to manufacturers, the sector represents nearly 8 billion euros in revenue in Europe. They therefore fear that overly restrictive regulations will penalize European players in the face of their American and Chinese competitors.
Beyond video games, the debate raises a broader economic question. European politicians want to see the emergence of technological champions capable of competing with the global digital giants. But at the same time, theEuropean Union intends to further regulate certain economic models when they raise questions of consumer protection. The difficulty therefore consists of finding the right balance: regulating for greater transparency without weakening the companies that Europe is precisely seeking to grow.
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