European Union targets gaming safety and microtransactions

The European Union is implementing new regulatory frameworks to enhance digital safety and consumer protection within the gaming industry. Under the proposed EU KIDS Act, service providers—including video game developers, social media platforms, and AI chatbot creators—must adopt “safety by design” and “safety by default” principles to protect minors.

Key provisions of the EU KIDS Act include implementing age verification tools, limiting excessive gameplay, and enhancing parental controls. The regulation also aims to mitigate risks associated with contact between minors and adults with malicious intent. Non-compliance could result in penalties of up to 6% of a company's global turnover.

In addition to child safety, the EU's CPC Network is targeting predatory monetization practices. New rules require transparency in in-game purchases, demanding that developers present clear, real-world pricing instead of using complex virtual currencies to obscure costs. The regulations also aim to prevent forced bundling, where players are compelled to buy higher-priced currency packs to afford specific items, and seek to regulate deceptive “loot box” mechanics that use artificial scarcity or countdown timers to pressure players into spending.