When you download Candy Crush or Clash of Clans, you usually pay nothing. The game is free. This is what is known as the “free to play” model, literally “free to play”.
Unlike console or computer video games, which often sell for several tens of euros, mobile game publishers attract hundreds of millions of players without asking them to pay up front.
So how do they make money? Partly thanks to advertising, but above all thanks to a small part of the players who make purchases directly within the game. These purchases usually consist of gems, virtual currencies, bonuses, or even special characters. The player spends real money to acquire these virtual coins, which they then use to advance faster or unlock certain content.
Why is the European Commission interested in virtual currencies?
That is precisely where the problem lies in the eyes of Brussels. In many mobile games, the player does not directly spend euros or dollars, but rather a virtual currency that has been previously purchased. The question posed by the European Commission is simple: does the player always understand what he is really spending?
If an object costs 5 euros, the price is immediately understood. But it costs 700 gems obtained from a pack of 1,200 gems purchased for 5 eurosthe perception of spending becomes much less intuitive. And when several virtual currencies coexist in the same game, the situation can become even more complex.
With its draft “Digital Fairness Act”, the European Commission wants to examine these practices and strengthen price transparency. The stated objective is to better protect consumers, especially the youngest ones, who are very present in this type of games.
Publishers fear a threat to their competitiveness
This perspective is of great concern to the mobile video game industry. In the pages of the Financial Times, the heads of several large European studios have expressed their concerns. According to them, some measures could lead to the appearance of messages or notices intended to contextualize the expenses made by players, with the risk of deteriorating the user experience. But their concerns go beyond the mere question of the comfort of the game.
Those responsible for the sector remember that mobile video games constitute one of the few digital fields in which Europe can still boast a global leadership position.
According to industry representatives, this It generates nearly 8 billion euros in revenue in Europe. For this reason, they fear that overly restrictive regulations will penalize European players compared to their American and Chinese competitors.
Beyond video games, the debate raises a broader economic question. European policymakers want technology leaders to emerge capable of rivaling the global giants of the digital sector.
But at the same time, the European Union intends to regulate certain economic models to a greater extent when they raise issues related to consumer protection. The whole difficulty lies, therefore, in finding the right balance: regulating to achieve greater transparency without weakening the companies that Europe precisely seeks to grow.
