EU Regulators Target Major Gaming Giants in Crackdown on In-Game Currencies

Europe’s Consumer Protection Cooperation (CPC) Network has launched a series of coordinated enforcement actions against some of the biggest names in the video game industry. The regulatory push is aimed at investigating and ensuring compliance with a set of "Key Principles" regarding in-game virtual currencies, guidelines that were initially announced by European authorities last year to bring greater transparency to digital microtransactions.

The CPC, which functions as a network of national consumer protection authorities responsible for enforcing European Union laws across member states, has formally asked major publishers including Activision Blizzard, Crytek, InnoGames, King, Mojang, Plarium, PLR Worldwide Sales, Riot Games, Supercell, and Ubisoft to review and adjust their commercial practices. The regulatory scrutiny directly targets popular titles across various platforms, including Hunt: Showdown 1896, Forge of Empires, Candy Crush Saga, Minecraft, Mech Arena, Gardenscapes, Valorant, Clash of Clans, For Honor, Diablo Immortal, and Call of Duty Mobile.

According to the CPC Network, these specific games were chosen for assessment as part of a wide-scale market compliance check. Regulators pointed to the titles’ broad reach, cross-device accessibility, and varied age ratings as factors that significantly amplify the impact of these commercial practices on everyday consumers, including younger audiences.

While the investigations are now officially underway, it remains entirely unclear what specific Key Principles may not have been adhered to by the publishers prior to the CPC Network opening its inquiries. The network has warned that a failure by these companies to address the expressed concerns could ultimately lead to formal enforcement measures carried out by national authorities. However, legal experts note that it remains uncertain whether such punitive actions would be strictly enforceable under the current framework of EU consumer protection laws.

Virtual currency rules

The escalating regulatory pressure follows the formal announcement last year of "Key Principles" governing virtual currencies within video games. The initiative called on publishers to clearly display the real-world financial cost of microtransactions, ensuring that players always understand the monetary value of what they are purchasing. Following the initial publication of these guidelines, both the CPC Network and the European Commission formally invited the video game industry to put forward concrete actions to voluntarily comply with the recommendations.

However, discussions failed to produce a satisfactory result, ultimately culminating in the current wave of enforcement actions. Regulators claimed that a high number of prominent games companies have failed to make any substantive changes to their titles despite the publication of the CPC Network’s public guidance and extensive industry talks held over recent years.

The broader crackdown has already seen individual companies face direct regulatory action. Star Stable Entertainment previously faced enforcement measures over the alleged lack of transparency in Star Stable Online. In that case, the CPC claimed the company violated consumer rules by offering direct exhortations to children in advertisements, failing to provide clear and transparent pricing information, and deploying high-pressure techniques such as time-limited offers to unduly influence young players into making impulsive in-app purchases.

The CPC Network has signaled that it will maintain this pressure moving forward. In a public statement, the organization emphasized that it will continue to take joint enforcement actions, where appropriate, to address commercial practices that do not comply with EU consumer protection legislation. On this basis, the CPC Network has called on all companies active in the video gaming sector to proactively review their practices and address any compliance issues, particularly those highlighted in existing CPC Network common positions and any subsequent frameworks that may be disclosed in the future.

What it really means

The initiative, however, has faced substantial pushback from the industry since its inception. Celia Pontin, director of policy and public affairs at Flux Digital Policy, explained that the CPC Network’s principles concerning in-game currencies have been highly contentious from the very beginning. Major industry bodies, including Video Games Europe and the European Games Developer Federation, have previously characterized the guidelines as introducing new legal theories and misguided interpretations of established EU consumer law.

Pontin noted that the fundamental disagreement stems from a clash of definitions. The CPC generally considers virtual in-game currencies to be on a direct par with fiat currency, whereas the video game industry points to a long-standing legal view that digital currencies are simply a specialized form of digital content. This distinction carries significant weight when determining how in-game currencies are legally sold, marketed, and utilized by players.

Furthermore, industry representatives have raised concerns regarding the practical viability of the Principles. Some of the regulatory requirements are viewed as unworkable within specific, legitimate gameplay contexts, or alternatively, as creating a risk of making pricing structures even less clear for average consumers.

Crucially, Pontin highlighted that the CPC Principles themselves do not constitute actual legislation; rather, they represent a set of non-binding guidelines issued by a regulatory enforcement network. This distinction is explicitly acknowledged within the official Principles document itself, which features a footnote on its final page stating that compliance with the recommendations does not automatically guarantee compliance with the law. Most importantly, the text notes that failing to respect the recommendations contained in the document cannot be automatically considered unlawful. This fundamental nuance is precisely why the ongoing disagreement over legal interpretation carries such heavy weight for publishers.

Pontin added that public statements from regulators still leave considerable ambiguity regarding the exact actions the CPC is currently undertaking. While the network reported carrying out a market check and identifying several games requiring further assessment alongside requests for commercial practice changes, no specific legal violations have been formally established. She noted that nothing specific has been flagged as an unlawful issue, and no company has yet been found to have breached the law. Additionally, any modifications a publisher might implement voluntarily during the course of an ongoing investigation do not imply that their original business approach was non-compliant. If a company is eventually found to be in breach, the resulting consequences will depend heavily on a multitude of factors, including the specific enforcement framework of the relevant EU Member State, the exact nature of the issue being investigated, and whether mutually agreed-upon changes can be negotiated.

Nevertheless, Pontin pointed out that the CPC has clearly stated its ambition to establish a regulatory precedent for the future through these high-profile cases. Because these Principles are closely aligned with the expected positions of the upcoming Digital Fairness Act, the precedent established today could eventually extend far beyond the current guidelines and potentially influence the evolution of European law itself.

Following the announcement, Michael McGrath, the European Commissioner for Democracy, Justice, the Rule of Law and Consumer Protection, emphasized that the video game industry must take active steps to ensure its products do not expose players—particularly vulnerable children—to harmful or unfair commercial practices. He reiterated that the digital marketplace must remain fair and that existing rules must be fully respected, with national authorities, backed by the European Commission, ensuring strict enforcement.

Regulation and digital policy are expected to remain central discussion points at upcoming industry gatherings, including Pocket Gamer Connects Nordics and PGC London, as developers and legal experts continue to navigate Europe’s incoming regulatory landscape, which includes major legislative efforts like the EU Kids Act and the Digital Fairness Act.