The European Commission has formally presented the Digital Fairness Act to EU member states, proposing extensive regulation of loot boxes, virtual currencies, pay-to-win systems, and dark patterns in games. The draft text applies to any company operating in the EU, regardless of base location.
If passed, the Act would require game publishers to disclose the real-world monetary value of virtual currencies and their purchases. Publishers must disable paid virtual currencies by default for children unless parents approve. For paid "variable reward systems" or loot boxes, companies must state the types of objects available and their probability. Paid loot boxes would be disabled by default for minors, with users given an easily accessible option to switch them off.
The Act outright prohibits pay-to-progress and pay-to-win mechanisms for children. More broadly, it targets addictive design patterns, including automatic content play without interruption, notifications unrelated to user activity, features that incentivize engagement at set times or frequencies, and systems that simulate interpersonal relations through nagging prompts. Companies must provide options to disable these features.
The regulation also restricts personalized advertising and pricing targeted at children and prohibits influencers from directly encouraging minors to purchase products.
Games like Overwatch, Dota 2, and GTA Online would face consequences if the Act passes. Individual EU governments can impose fines and consumers can seek financial compensation. This follows recent changes to EU rating law that set games with loot boxes to PEGI 16 by default.