Microtransactions in games: the new EU guidelines explained
Microtransactions are becoming increasingly common in games. The Consumer Protection Cooperation Network, headed by the EU Commission, has now presented new guidelines to regulate these sometimes questionable practices. Let’s take a closer look.
The Consumer Protection Cooperation Network (CPC), coordinated by the EU Commission, has adopted a series of guidelines aimed at regulating all forms of microtransactions in games. By doing so, the consumer protection regulations that already apply elsewhere both online and offline will be better implemented and monitored in video games.
Source: Shutterstock
What are microtransactions?
Microtransactions are digital purchases within games or apps where you spend real money on virtual content or services. They were initially especially popular in free-to-play games, allowing a company to earn money from a game without charging for the game itself. These days, microtransactions can also be found in full-price games – a well-known example is Ultimate Team mode in football simulator EA Sports FC, or Call of Duty: Warzone. There are quite a few categories of microtransactions.
Cosmetic items
Cosmetic items, or just cosmetics, help make a game world, the interface or characters in games look nicer. Take the skins available in Fortnite, for example. But there are also outfits, emotes and stickers in other games.
Virtual currency
You can buy in-game currency using real money. With it, you can acquire extra content for a game – V-Bucks in Fortnite or in-game dollars for GTA Online, for example.
Source: Shutterstock
Pay-to-win elements
Pay-to-win elements allow you to buy better equipment in a game that you’d otherwise have to earn. These include, for example, legendary gems in Diablo Immortal, which let you level up faster or get better equipment.
Battle passes and seasonal content
In addition to exclusive content you receive when purchasing a Battle Pass, you’ll also level up faster and get more rewards by playing frequently. These can be found in Call of Duty: Warzone, among others.
Comfort features
You can even shorten or remove waiting times in games for a price. For example, there are building strategy games such as Clash of Clans, where you have to wait while buildings are being constructed. If you pay to continue playing right away, the progress grows automatically.
Loot boxes
Loot boxes reward you with all kinds of treasures, some of which can’t be unlocked for free. These are available in Overwatch, for example. In EA Sports FC, they’re called FUT packs. It’s often unclear what you’ll get. This is tantamount to a gambling element and therefore has addictive potential.
Source: Luca Fontana
Why were these measures decided?
There are legal problems around microtransactions, especially seeing their trend in recent years. EU consumer protection laws require transparency and fairness in digital commerce. However, many microtransaction models, especially loot boxes, violate these principles. Studies show (page in German) that loot boxes possess similar mechanisms to gambling and endanger underage players in particular. Some EU countries (e.g. Belgium) have already banned loot boxes.
In addition, digital purchases have to state clear information on pricing, which is obscured by in-game currencies. EU countries also mandate a right to return, which isn’t always possible with in-game items. The Digital Services Act prohibits so-called dark patterns that pressure players to buy.
Source: deceptive.design
One relevant case right now surrounds the measures taken against Swedish company Star Stable Entertainment AB, which developed the game Star Stable Online. The game runs online horse races, allowing players to buy content via microtransactions that either makes elements in the game prettier or gives advantages in the race.
In its investigation, the CPC found that the game engages in commercial practices that may be «particularly harmful to children» and violate consumer protection laws. Specifically, the CPC criticised:
- direct appeals to children, urging them to buy in-game currency or items
- the use of pressuring techniques such as dark patterns («purchase through time-limited practices») to unduly influence children to purchase in-game content
- a lack of clear and transparent information, adapted to children, about buying and using in-game virtual currency
- failure to ensure that influencers promoting their products clearly disclose commercial content
Source: Star Stable
The Swedish company must now submit a written statement within one month. In this letter, it must address all the points that have been raised and explain how it intends to rectify them within a reasonable period of time. Failure to do so may result in fines or other consequences. As part of this process, the CPC network and EU have defined guidelines to ensure transparency and fairness for microtransactions in games.
What do these guidelines actually look like?
Based on EU consumer protection rules, the CPC network has issued the following guidelines for better implementation and regulation in games:
1. Prices should be clear and transparent
2. Practices that conceal costs for digital content and services in a game should be avoided
3. Practices that force consumers to buy unwanted virtual currency in a game should be avoided
4. Consumers should be provided with clear and comprehensible information before making a purchase
5. Consumers’ right of return should be respected
6. The terms of a contract should be fair and written in simple and clear language
7. Game design and gameplay should respect the different vulnerabilities consumers might have
You can find out what this means for you in practice and what game developers need to incorporate into their games here.
So what happens now?
These guidelines will soon become part of the Digital Fairness Act (DFA). It’s an upcoming law intended by the European Commission to improve the protection of consumers in digital spaces. This idea emerged after a study of current EU consumer protection laws in October 2024. It showed that current regulations aren’t sufficient to protect users from unfair online practices.
The DFA is intended to close legal loopholes and prevent dubious methods such as manipulative user interfaces and misleading influencer marketing. It should ensure that people are given impartial information and can make decisions without being influenced by deceptive practices as a result.
The law is currently in a preparatory phase. In spring 2025, the European Commission is planning a public consultation that will last twelve weeks. EU citizens and stakeholders from various sectors will be consulted in order to further develop the draft legislation. Officially, the bill won’t be presented until 2026 at the earliest. The DFA will complement existing EU regulations such as the Digital Services Act and the Digital Markets Act.
Header image: Shutterstock
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I've been tinkering with digital networks ever since I found out how to activate both telephone channels on the ISDN card for greater bandwidth. As for the analogue variety, I've been doing that since I learned to talk. Though Winterthur is my adoptive home city, my heart still bleeds red and blue.
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