European Consumer Watchdogs File Complaint Against In-Game Currencies

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A coalition of European consumer protection organizations has taken aim at the video game industry’s use of in-game digital currencies, filing a formal complaint with the European Commission.

On September 12, the European Consumer Organisation (BEUC), alongside 22 member organizations from 17 different countries, urged for stronger regulatory action. They called for the European Network of Consumer Authorities (CPC-Network) to address the growing concern over in-game currencies that are often marketed in a way that maximizes consumer spending.

Complaint Details

The complaint highlights the widespread use of digital currencies in free-to-play games, particularly those aimed at children, which has become a significant source of revenue for game developers. The watchdogs argue that the dual nature of these currencies—acting both as digital content and as a payment mechanism—creates legal uncertainties within the European Union.

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According to BEUC’s report, many video game companies exploit the psychological impact of in-game currencies, making it easier for consumers to spend without fully understanding the financial implications.

In many cases, prices are only displayed in these digital currencies, without clear conversion rates to real money, making it harder for players, especially younger ones, to gauge how much they are actually spending. The watchdogs allege that these practices could be in violation of EU consumer protection laws.

The organizations argue that consumer rights must extend to purchases made with these currencies, countering claims by some in the industry that in-game purchases fall outside traditional consumer protection laws.

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Major Game Companies Under Scrutiny

The report specifically calls out major industry players such as Activision Blizzard, Electronic Arts, Epic Games, Roblox Corporation, and Ubisoft for their extensive use of in-game currencies. It notes that Epic Games’ Fortnite alone can generate up to $2 million daily from in-game purchases, with spending by children on such transactions increasing 18% between 2020 and 2023.

Interestingly, while the report does not directly mention cryptocurrencies, it draws parallels to Web3 games that use blockchain-based tokens for in-game purchases. This signals the broader relevance of the issue as gaming increasingly intersects with emerging financial technologies.

Meanwhile, the European Union (EU) has made significant progress in establishing a comprehensive regulatory framework for cryptoassets, with the adoption of the Markets in Crypto-assets (MiCA) Regulation in 2023.