German games association Game warns Digital Fairness Act draft risks double regulation

The German Games Industry Association (Game) has criticised the Digital Fairness Act (DFA), saying the draft creates "double regulation and legal uncertainty" that could harm European developers. The European Commission presented the draft after an earlier leak. It aims to address practices that exploit or harm consumers in digital markets, including games.

For games, the draft covers in-game purchases, with specific rules for virtual currency, loot boxes, pay-to-win mechanics, and subscription-based games and services. Game argues that blanket bans in these areas threaten the free-to-play segment, which relies on optional in-game purchases and brings in a significant share of industry revenue.

Game also objects to vague definitions, citing 'pay-to-progress' as an example. It says the lack of clarity is a bigger problem because fines can reach 6% of worldwide annual turnover. Managing director Felix Falk said the Commission wants to regulate business models down to the last detail, putting the competitiveness of European games companies at risk.

Falk also raised age ratings. He said that if the draft were implemented, the USK and PEGI ratings would become meaningless, because every game rated below 18 would automatically count as a service aimed at children. He added that the KIDS Act and the DFA contradict each other: parents have a say on social media, but with games the Commission takes that decision out of their hands. He called on the Federal Government and the federal states to defend Germany's co-regulation system at EU level.

Game is not alone. The European Games Developer Federation and Video Games Europe issued a joint statement calling the proposal "unworkable, unjustified, and disproportionate." They said Europe's 8,700 companies, most of them small studios, would compete with one hand tied behind their backs against rivals outside the EU.