Europe's Gaming Industry Braces for Triple Regulatory Wave

Europe's gaming industry is preparing for a significant regulatory shift as three separate laws converge on the continent. The EU Digital Services Act has already taken effect, while the EU Kids Act awaits final negotiation between the European Parliament and Council, potentially reaching completion by the end of the decade. News on the Digital Fairness Act is expected later this year.

The EU Kids Act presents the most immediate design challenges for mobile developers. Article 15 requires games to ensure a high level of privacy, safety and security for minors, prohibiting mechanics that encourage compulsive or excessive play. This includes daily login bonuses, activity streaks and other time-based engagement systems.

"As drafted, daily log-ins, activity streaks and other time-based mechanisms are under threat," said Isabel Davies, senior associate at Wiggin. Games companies face a binary choice: implement age verification to continue using these features for adult players in the EU, or remove them entirely across all regions.

Games must assume all users are minors by default and apply safety protections until age assurance confirms otherwise, according to Flux Digital policy advisor Veronica Perez. Video Games Europe has called for PEGI and USK age rating systems to become the "de facto standard for games made available in Europe." Alternative age-assurance solutions exist for games beyond the EU's regulated age-verification wallets.

The Digital Fairness Act could prove equally disruptive. Supercell CEO Ilkka Paananen previously warned the proposed regulation could "kill the European games sector" by restricting in-app purchases, loot boxes, hard currency and features like login bonuses. Industry experts have described potential impacts as "catastrophic" and "another IDFA moment," referencing Apple's 2021 privacy policy changes.

Peter Lewin, partner at Wiggin, noted the regulatory pressure is genuine. "The objectives behind these new laws are, of course, commendable. But there's no getting away from the fact that the regulatory burden they can place on businesses is real and potentially very significant."

The regulatory environment reflects real concerns about player safety. In 2021, The Wall Street Journal reported that Instagram's internal research found 13% of UK teenagers and 6% of US users surveyed traced suicidal ideation to the platform. Roblox has faced bans in countries including Türkiye and Egypt and has implemented age-gated safety features including Kids and Select accounts. Discord recently revamped its age verification to estimate user age using behavioral signals.

European Game Developer Federation managing director Jari-Pekka Kaleva acknowledged the regulatory complexity ahead. Industry leaders will discuss these developments at Pocket Gamer Connects Nordics on October 20-21 and PGC London on January 18-19.