Europe's consumer watchdog investigates major gaming studios over virtual currency practices

Europe's Consumer Protection Cooperation Network (CPC) is investigating ten major gaming companies over their virtual currency practices, following what it describes as unsatisfactory responses to compliance guidance published last year.

The CPC, which represents national consumer protection authorities across the EU, has asked Activision Blizzard, Crytek, InnoGames, King, Mojang, Plarium, PLR Worldwide Sales, Riot Games, Supercell and Ubisoft to align their commercial practices with 'Key Principles' on in-game virtual currencies. Games under assessment include Hunt: Showdown 1896, Forge of Empires, Candy Crush Saga, Minecraft, Mech Arena, Gardenscapes, Valorant, Clash of Clans, For Honor, Diablo Immortal and Call of Duty Mobile.

The CPC selected these games for review based on their broad reach, cross-device accessibility and varied age ratings, which the network said amplify the impact of in-game currency practices on consumers. The network did not specify which compliance issues prompted the investigations.

The CPC's 'Key Principles', announced in 2023, call on publishers to display the real monetary cost of microtransactions and avoid hiding purchase requirements from players. The principles also ask companies to respect consumers' right to withdraw from purchases and to protect vulnerable groups, particularly children.

After publishing the guidance, the CPC Network and European Commission invited the games industry to demonstrate concrete compliance actions. According to the CPC, discussions did not yield satisfactory results, prompting today's formal investigations. The network stated that a "high number" of companies have not made substantive changes following the public guidance or "extensive talks" over recent years.

The CPC warned that failure to address its concerns could lead to enforcement measures by national authorities, though it remains unclear whether such action would be enforceable under current EU consumer protection laws. The network previously took action against Star Stable Entertainment over Star Stable Online, claiming the company violated rules through direct exhortation to children in advertisements, lack of transparent information and time-limited purchase pressure tactics.

Celia Pontin, director of policy and public affairs at Flux Digital, explained to PocketGamer.biz that disagreement over the CPC's approach centres on how in-game currencies are classified. "The CPC considers in-game currencies to be on a par with fiat currency, whereas the industry points to a long-standing legal view that they are just a kind of digital content," Pontin said. "This difference matters when it comes to how in-game currencies are sold and used."

Pontin noted that the CPC's Principles are guidelines rather than legislation. She highlighted a footnote in the Principles document stating that compliance is not a guarantee of legal compliance and that "not respecting the recommendations contained in this document cannot be automatically considered unlawful."

From the CPC's statements, Pontin observed that no specific compliance breaches have been identified and no company has been found to have broken the law. She added that any changes made during an investigation do not indicate the original approach was non-compliant.

However, Pontin noted that the CPC has signalled its intention to set a precedent with these cases. "With the Principles being so closely aligned to the expected position of the upcoming Digital Fairness Act, this precedent could go far beyond the Principles and potentially influence the law itself," she said.

Michael McGrath, European Commission Commissioner for Democracy, Justice, the Rule of Law and Consumer Protection, stated that the industry must ensure its games do not expose players, especially children, to harmful or unfair practices. "The game must be fair, and the rules must be respected," McGrath said. "National authorities, with the support of the Commission, will make sure they are enforced."