Supercell CEO Warns EU Digital Fairness Act Proposals Will Harm Consumers and Stifle Free-to-Play Games

Supercell CEO Ilkka Paananen has issued a strong warning against the European Union’s newly revealed draft proposals for the Digital Fairness Act (DFA), arguing that the regulations will ultimately hurt consumers rather than protect them.

The European Union recently published its draft proposal for the DFA, setting out sweeping changes designed to reshape how video games handle monetization and consumer interactions. Among the most notable provisions, the draft calls for modifications to in-game currencies so that they more clearly state their real-world value at the point of transaction. It also mandates the strict disclosure of loot box odds, grants users the explicit ability to turn off loot boxes entirely, and specifies that all in-app purchases (IAPs) must be disabled by default for minors across digital platforms.

For more than a decade, Supercell has stood as a towering champion of the free-to-play mobile gaming sector. Ever since the landmark global launches of major titles like Hay Day and Clash of Clans back in 2012, the Helsinki-headquartered developer has generated billions of dollars in revenue, cementing its status as one of the most successful and influential gaming powerhouses in the European region and across the global market. Given its immense footprint in mobile gaming, the company’s stance on regulatory matters carries substantial weight within the industry.

This latest development follows warnings delivered by Paananen last year, during which he publicly proclaimed that emerging European Union policies and regulatory frameworks risked crippling Europe’s broader games sector. Now, with the specifics of the Digital Fairness Act coming to light, the executive has doubled down on his concerns, pointing to what he views as fundamental flaws in the European Commission’s approach to consumer protection and digital commerce.

"Confusion, not clarity"

Elaborating on his position, Paananen argued that while the European Commission has framed the new regulations as a necessary measure to safeguard consumers and vulnerable demographics, the practical outcome will likely be the exact opposite. He claimed that by introducing burdensome hurdles and making it considerably more difficult for players to complete in-game purchases, the regulatory framework will inevitably lead to a reduction in the number of free-to-play games available on the market. This issue is particularly sensitive for Supercell, given that approximately 95% of the company’s massive monthly player base enjoys its titles completely free of charge, relying on optional microtransactions to fund ongoing content updates and server maintenance.

Furthermore, Paananen asserted that the DFA threatens to strip away decision-making authority from families, shifting the responsibility of purchasing choices for children away from parents and directly into the hands of the European Commission. He also criticized the regulatory scope, claiming that the DFA adopts an approach that is even stricter than contemporaneous proposals being formulated for social media platforms. Under the current draft, the regulation reportedly treats anyone under the age of 18 in the exact same manner as a young child, failing to account for the nuanced digital literacy and maturity levels of older teenagers.

In voicing his opposition, the Supercell CEO echoed the strong support already expressed by prominent trade bodies, including the European Games Developer Federation (EGDF) and Video Games Europe. These organizations have previously banded together to label the regulation, in its current unamended form, as entirely unworkable, unjustified, and disproportionate to the issues it seeks to address.

Paananen drilled down into the logistical impossibilities of the proposed currency disclosures, highlighting why the regulatory language fails to match the reality of modern game economics. He explained that the proposal’s central idea of transparency relies on displaying a specific euro value on in-game currency once it has already been bought, precisely at the moment a player intends to use it. However, because players acquire currency at wildly different price points over time through promotional bundles, discounted packages, and special seasonal offers, any calculated euro figure displayed at the point of consumption is essentially an educated guess rather than an accurate metric. In Paananen’s view, this creates confusion rather than clarity for the end user.

Despite his vehement criticism of the draft proposal, the Supercell CEO emphasized that the industry is aligned with regulators on core principles. He stated that the company fully shares the Commission’s overarching goal of promoting safe play environments, especially when it comes to safeguarding children. He pointed out that the games industry has already successfully developed, implemented, and refined tools that genuinely work in practice. These existing industry-led measures include keeping purchases turned off by default for children, ensuring that only a verified parent or guardian can switch purchasing capabilities on, providing clear real-money pricing displays, and offering straightforward refund policies for unused currency. Rather than imposing unworkable mandates, Paananen suggested that policymakers should focus on building upon these proven frameworks. Consequently, he reiterated his full support for the urgent calls made by Video Games Europe and the EGDF for a complete rethink of the legislative text.

The unveiling of the Digital Fairness Act draft has sparked widespread debate across the international gaming landscape. Industry observers and executives have raised serious questions regarding how mobile game monetization will adapt if the current provisions are enacted into law. Prominent organizations have also weighed in on the international repercussions; for instance, the United Kingdom’s games trade body, UKIE, has publicly warned that the EU’s Digital Fairness Act could inadvertently harm the UK games industry and undermine parental choice across borders.

As lawmakers, developers, and trade associations grapple with the implications of the draft proposal, regulatory compliance and the future of digital monetization are expected to dominate industry discussions. The broader topic of industry regulation will serve as a key focal point at upcoming major gatherings, including Pocket Gamer Connects London, where leading figures will gather to analyze the shifting legislative environment and its long-term impact on the European and global games sector.