European Commission Wants Crackdown on Free-to-Play Games

The European Commission is meeting today and tomorrow with various “national enforcement authorities and large tech companies” to discuss concerns over complaints from across Europe regarding in-app purchases.

The Commission notes that Europe’s “app economy” is on the rise and is expected to be worth an estimated €63 billion in the next five years. However, it also notes that while over 50 per cent of the European digital games marketplace consists of games advertised as “free”, many contain costly, in-app purchases.

The Commission believes some consumers are not fully aware that they are spending money because their credit cards are charged by default and that children are particularly vulnerable to aggressive marketing in “free to download games which are not free to play.”

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Consumers and in particular children need better protection against unexpected costs from in-app purchases.

“Europe’s app industry has enormous potential, both to generate jobs and growth, and to improve our daily lives through innovative technology,” said Vice-President and EU Justice Commissioner Viviane Reding. “For the sector to deliver on its potential consumers must have confidence in new products. Misleading consumers is clearly the wrong business model and also goes against the spirit of EU rules on consumer protection. The European Commission will expect very concrete answers from the app industry to the concerns raised by citizens and national consumer organisations.”

“Consumers and in particular children need better protection against unexpected costs from in-app purchases,” said Commissioner Neven Mimica. “National enforcement authorities and the European Commission are discussing with industry how to address this issue which not only causes financial harm to consumers but can also put at stake the credibility of this very promising market. Coming up with concrete solutions as soon as possible will be a win-win for all.”

During the meetings the Commission will stress that games advertised as “free” should not mislead consumers about the potential costs involved, and that games should not directly encourage children to purchase items in a game, or to beg an adult to buy items for them. The Commission will also insist consumers are properly informed about payment arrangements and that publishers should provide an email address so that consumers are able to contact them regarding complaints about in-app purchases.

Research released today has found that just 0.15 per cent of players of free-to-play games account for 50 per cent of actual revenue, highlighting the reliance of developers on a tiny group of so-called "whales."

Luke is Games Editor at IGN AU. You can find him on IGN here or on Twitter @MrLukeReilly, or chat with him and the rest of the Australian team by joining the IGN Australia Facebook community.

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