EU and National Authorities Unite to Shield Children from Gaming Exploitation

 

The EU Commission and National Authorities have decided, in light of a recent case, to fight the increasingly widespread practice of predatory microtransactions targeting children. Let’s take a look at what it’s all about!

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European Commission takes action against predatory microtransactions

The news comes directly from the European Commission, which, in collaboration with the Consumer Protection Cooperation Network (CPC), issued a press release. The release, dated March 21, 2025, introduces new regulations in light of a case related to practices by the Swedish studio Star Stable Entertainment AB.

This follows an investigation into the game Star Stable Online, a horse game available on multiple platforms, mainly mobile devices. This makes it easily accessible to a younger audience, well below the age of 18. The game adopts a Free to Play business model with microtransactions.

European Commission Press Release

 

EU and National Authorities: What Are the New Regulations?

Following the investigation into the aforementioned Star Stable Online, the European Commission decided to take action against the company. At the same time, they established regulations to set limits on the industry’s malpractice. Specifically, the following:

  • Clear and transparent pre-contractual information on prices.
  • Avoid practices that hide the true cost of in-game digital content and services. Also, avoid practices that force consumers to buy virtual coins.
  • Respect for consumer’s right of withdrawal.
  • Respect for consumers considered vulnerable, especially children.

The Commission has effectively given an ultimatum to Star Stable Entertainment AB. They must provide a written response regarding the matter, along with an actual plan to address the issue within a month from the release. This will likely involve the entire industry going forward.

The Growing Issue of Microtransactions

The case involving Star Stable Online is just the tip of the iceberg, and certainly not the last case. This issue has been widespread for many years, and it saw a boom with the adoption of mobile devices. More recently, Hoyoverse was forced to ban the sale of “loot boxes” to minors under 16 years old, following intervention from the FTC and a $20 Million fine over Genshin Impact.

This phenomenon, however, is not limited to mobile platforms, with the entire gaming industry now relying on DLCs, microtransactions, and loot boxes. These are designed to create a psychological addiction rooted in social practices, commonly known as FOMO (Fear of Missing Out). This business practice is highly profitable and more deeply ingrained than many may realize, with giants like Valve and Epic Games also involved.

 

In Conclusion

What the EU has proposed are initial regulations, but they serve as a wake-up call for many companies, who will now need to adapt to increased scrutiny. These regulations and adjustments are hoped to provide strong regulation and a much-needed wake-up call for the entire gaming industry.


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