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The EU is targeting in-game "virtual currencies," requiring gems and coins to be priced in fiat currency!
Candy Crush, Supercell warn of potential industry disruption
The EU is currently drafting regulations through the Digital Fairness Act and CPC Consumer Protection Guidelines to strictly regulate "virtual currencies" in mobile games, such as gems, gold coins, and diamonds, not cryptocurrencies. The new rules may require companies to display virtual currency prices in euros, show confirmation prompts for each purchase, and even require parental re-authorization for minors, aiming to protect children and vulnerable players from excessive spending.
(Background: Ubisoft closes 2 studios again, lays off 380 people! The sixth wave of slimming down after the NFT boom)
(Additional context: German court rules: Google AI responsible for false summaries, disclaimers ineffective)
Key Summary
To clarify, the EU’s focus this time is not on cryptocurrencies, but on gems, coins, and diamonds in mobile games.
The EU is drafting regulations via the Digital Fairness Act (DFA) and CPC consumer protection guidelines to bring these in-game "virtual currencies" under stricter oversight, targeting the most profitable monetization strategies in free-to-play games.
These games typically involve players spending real money to buy virtual currency, which is then used to upgrade characters, items, or accelerate progress. The EU worries that this "currency exchange" design deliberately blurs the line of actual costs, especially making it easy for children and players with weaker self-control to spend more without realizing.
The CPC consumer protection mechanism proposes 7 new principles, but for game companies that rely on "making players forget how much they’ve spent," this regulation hits a vital artery.
What does the EU want? Price gems in euros, remind players at each purchase
According to the proposal, game companies may need to do the following:
In simple terms, it’s about forcing a reminder like "You are about to spend X euros" before every transaction.
Supercell and Candy Crush warn "it will ruin free-to-play"
The gaming industry has voiced strong opposition. Finnish studio Supercell, creator of Clash of Clans, CEO Ilkka Paananen, publicly sent a letter to the EU, stating that these regulations could crush the business model that has made free-to-play games Europe’s most successful tech export. He warned that if the proposal proceeds as is, players might see dozens of pop-up windows per session, ruining the gameplay experience.
Todd Green, CEO of King, the maker of Candy Crush Saga, also pointed out that excessive restrictions on virtual currency systems would require major redesigns of these popular global mobile games.
Mathias Gredal Nørvig, CEO of SYBO Games, the developer of Subway Surfers, took a more balanced stance, suggesting that regulation should protect players while also allowing industry innovation.
The proposal is still in consultation, and the final regulations will depend on whether the EU can find a middle ground between "protecting players" and "not killing the industry."
Frequently Asked Questions
Is the "virtual currency" regulated by the EU cryptocurrencies?
No. The EU Digital Fairness Act and CPC guidelines target in-game virtual currencies like gems, coins, and diamonds, not cryptocurrencies like Bitcoin. The goal is to protect players, especially children, from excessive spending.
How will the new regulations affect players and game companies?
Players might see prices in euros and confirmation prompts before each purchase, and minors may need parental approval. Companies like Supercell and King warn that too many prompts could ruin the gaming experience and threaten the free-to-play business model.