“The DFA is putting at risk the competitiveness of European games companies, which are already struggling to hold their own globally”
Image credit: Game
The German Games Industry Association (Game) has criticised the Digital Fairness Act (DFA), warning that the legislation creates “double regulation and legal uncertainty” that could significantly harm European developers.
Yesterday, the European Commission presented its draft of the Digital Fairness Act, following an earlier leak. The legislation aims to address practices that exploit or harm consumers in digital markets, including the games industry.
This includes in-game purchases, with specific rules for virtual currency, loot boxes, pay-to-win mechanics, and subscription-based games and services.
Game argued that blanket bans on in-game purchases, especially those involving loot boxes, pay-to-win mechanics, and virtual currencies, threaten the free-to-play market segment. This segment relies on optional in-game purchases and generates a significant share of industry revenue.
Game also highlighted the Commission’s use of vague definitions such as ‘pay-to-progress’ and the overall lack of clarity, which creates legal uncertainty for companies. This concern is heightened by the possibility of fines of up to 6% of worldwide annual turnover.
“With the DFA,
