EU complaints target gaming giants over manipulative microtransactions
A complaint has been lodged with the European Commission and EU consumer protection agencies against companies in the video game industry, including the producers of popular games like Fortnite and Minecraft. The allegations involve manipulating and coercing players into purchasing virtual currencies, known as microtransactions.
The complaint is backed by the EU consumer organisation BEUC and 22 organisations from 17 EU countries, including the Belgian Testachats, the German VZBV, and the Polish Consumer Federation.
The groups have accused the video game giants, including the producers of popular titles such as Fortnite, EA Sports FC 24, Minecraft, and Clash of Clans, of using unfair practices and manipulative techniques to persuade players to spend additional money, which violates EU consumer protection laws.
The main issue is the encouragement of users to purchase virtual currencies, known as virtual premium currencies, which can be bought with real money either in the game or through app stores. These currencies take different forms in the game, such as points, coins, or gems, which players typically use to buy so-called skins, like better outfits for characters or items that change the appearance of their weapons. These items are cosmetic and do not help players win.
Game producers find it easiest to manipulate children
Organisations accuse gaming companies of a lack of transparency in the pricing of in-game currencies, meaning that players don't know exactly how much they pay for a given digital item. For instance, if a new helmet costs 3,000 diamonds, this could mean either 10 euros or 100 euros. The organisations point out that the lack of clarity often pushes consumers to spend more money on the game.
They added that the companies' argument that players prefer virtual currencies in-game is flawed, as many consumers find this step confusing.
Furthermore, consumer organisations warn that it is primarily children who fall victim to the unfair practices of gaming companies, as they are more susceptible to online manipulation. Data shows that minors in the European Union spend an average of £350 per month on in-game purchases.
"Companies are well aware of children's vulnerability and use tricks to lure younger consumers into spending more," emphasized the director of BEUC.
producers of Fortnite, Minecraft, and EA Sports FC 24 are not above the law
BEUC also stated that in recent years, video game producers have developed business models increasingly reliant on in-game purchases, including game currencies. A review by BEUC of 50 video games most played in 2023 shows that 21 (42%) included premium currencies. Eight of these 21 games were available to children aged 12 and up.
European Commission spokeswoman Joerdis Ferroli acknowledged on Thursday (12 September) that the EC had received the organisation's complaint but would only decide whether to take further steps after thoroughly analysing the allegations against the companies.
The EC's spokesperson for digitalisation, Thomas Regnier, reminded that companies operating in the digital world must comply with regulations stemming from the Digital Services Act (DSA). This also applies to digital stores, which must, among other things, adhere to the obligation to assess the risks associated with selling specific digital products, including to children, and implement appropriate measures.
Statistics show that more than half of EU consumers regularly play video games. The majority are children—84% of players are aged 11-14. In 2020, the global revenue from in-game purchases amounted to over £42 billion (approximately 50 billion euros), constituting about one-quarter of the revenue in the video game market. The video game sector generates more revenue from in-game purchases than the film and music industries combined.
