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Digital Fairness Act: A Potential Game Changer for the European Games Industry
TL:DR;
The upcoming EU’s Digital Fairness Act (DFA) will likely bring big changes to the games industry, potentially requiring significant adjustments in game design, monetisation and player engagement techniques.
Here’s our overview of what to expect from the DFA and how it might affect the video games industry. If you enjoy this article and want deeper analysis or tailored advice and support, then get in touch – we’d be happy to discuss how Flux Digital Policy’s expertise can meet your needs.
The European Commission (EC) signalled a significant shift in consumer protection within digital markets following the publication of its Digital Fairness Fitness Check (DFFC) report in October 2024. This assessment evaluated the adequacy of the existing EU consumer protection legal framework in the digital age. Among the key findings, the Commission concluded that the current framework lacks the clarity needed by both consumers and businesses to ensure digital fairness, alongside enforcement challenges.
In response to these findings, a series of official communications, including the ongoing consultation on the EC Consumer Agenda 2025-2030, have highlighted the forthcoming Act as a key instrument for improving consumer protection in the digital realm. While the precise scope and content of this new legislation are still under discussion, the DFFC report findings indicate that it will doubtless be a game-changer. Further details regarding the potential form and specific provisions of the DFA are anticipated following the launch of a public consultation, expected to commence around June 2025.
What to expect from the DFA?
Drawing upon the conclusions of the DFFC report and ongoing discussions surrounding the EU consumer protection legal framework, Flux anticipates that the upcoming DFA would have significant implications for the games industry across different areas:
Transparency in virtual items and in-game currencies: The DFA will likely mandate greater transparency in how in-game currencies and items are priced in real-world money. This means companies would be required to display the real-money equivalent of all in-game purchases. The Consumer Protection Cooperation Network (CPC Network) has already issued ‘key principles’, outlining potential measures that could be integrated into the DFA. Check our analysis of the CPC principles here.
Dark Patterns and Addictive Design: Scrutiny of game interfaces and functionalities that may ‘introduce digital addiction’ to increase the amount of time, money and engagement is a top priority for the Commission. Examples identified in the DFFC include ‘fake urgency’, ‘nagging’ and ‘click fatigue’. The use of ‘pay-to-skip’ mechanics or features designed to engage with users, such as loot boxes, gacha mechanics, and other tools that involve an element of chance, may be seen as exploiting vulnerable players, requiring stricter regulatory oversight.
Player Data Protection and Usage: Emphasis on transparent and fair use of data, with a particular focus on profiling in the context of business-to-consumer personalisation practices. While the DFFC report did not definitively conclude on the harmfulness of commercial personalisation practices, game companies can anticipate measures extending beyond the current provisions of the GDPR and DSA.
Terms of Service and Subscriptions: Introduction of requirements for clear, concise, and fair terms of service. For subscription-based models, the DFA is expected to mandate explicit opt-in consent for automatic renewals and mandate simple cancellation processes.
Influencer Marketing Practices: The DFA is expected to address transparency in influencer marketing, an increasing strategy across the games industry. Game companies are likely to be held accountable for the actions and representations of their sponsored influencers, requiring clear disclosure of sponsored content and responsible promotion.
Regardless of the scope and content, the upcoming DFA could necessitate significant adjustments from most game companies, particularly in their core areas of game design, monetisation strategies, and player engagement practices. For this reason, game companies must proactively monitor these developments and actively engage in the drafting of this initiative.
Regarding game design, the DFA’s scrutiny of ‘dark patterns’ and ‘addictive design’ could necessitate significant changes in some techniques for player retention and game monetisation. Developers using these would need to find alternative ways to engage with players.
Concerning monetisation strategies, particularly for free-to-play games, the transparency requirements for virtual items and in-game currencies could significantly alter the existing monetisation landscape. As discussed in our analysis of the CPC principles, the impact of potential measures will vary depending on how virtual currencies are currently implemented within individual games.
Player engagement practices will also require careful reconsideration. The increased emphasis on stricter data protection measures and limitations on personalisation could impact the industry's ability to develop innovative and highly tailored game experiences for players.
What are the potential impacts on game companies?
Regardless of the scope and content, the upcoming DFA could necessitate significant adjustments from most game companies, particularly in their core areas of game design, monetisation strategies, and player engagement practices. For this reason, game companies must proactively monitor these developments and actively engage in the drafting of this initiative.
Regarding game design, the DFA’s scrutiny of ‘dark patterns’ and ‘addictive design’ could necessitate significant changes in some techniques for player retention and game monetisation. Developers using these would need to find alternative ways to engage with players.
Concerning monetisation strategies, particularly for free-to-play games, the transparency requirements for virtual items and in-game currencies could significantly alter the existing monetisation landscape. As discussed in our analysis of the CPC principles, the impact of potential measures will vary depending on how virtual currencies are currently implemented within individual games.
Player engagement practices will also require careful reconsideration. The increased emphasis on stricter data protection measures and limitations on personalisation could impact the industry's ability to develop innovative and highly tailored game experiences for players.
How can Flux help me?
The clear direction established by the DFFC and the forthcoming DFA signifies that some companies may need to engage with these crucial consumer protection issues more comprehensively than before, or even for the very first time. Given the diverse range of topics to be included in the DFA, the impact of these changes will vary significantly from company to company.
Our team possesses an extensive understanding of the diverse business models, player engagement mechanics, and monetisation strategies in the games industry, and includes a specialist in consumer protection regulation both in the video games industry and in influencer marketing. This allows us to analyse the potential impact of the DFA – from its implications for loot box mechanics and in-game economies to data usage for personalisation and the obligations surrounding influencer marketing – and ensure your company’s perspective is effectively communicated and considered.
Author: Veronica Perez Lima - Policy Advisor