The EU has apparently just declared lootbox / gacha games outlawed

[RiO]

The EU Commission and the Consumer Protection Cooperation Network (CPCN), which is a formal body of the EU composed of national enforcing authorities, have today released a new document issuing legal guidance in the form of key principles for the use of virtual currency in games:

https://commission.europa.eu/document/8af13e88-6540-436c-b137-9853e7fe866a_en

Some of the highlights and key take-aways:

1. All in-game items purchasable potentially wholly or in part through any virtual currency that is purchasable through real-world currency are required to list their price as a direct conversion to real-world currency based on the nominal real world price of the virtual currency.
   
2. The nominal price of virtual currency is the price for which said currency is normally purchased, without any special sales prices, deals, bonuses, or other applying.
   
3. No more preset bundle sizes for virtual currencies. You have to be able to buy the exact amount you want or need.
   
4. Virtual currency itself is deemed a digital service that is covered by consumer rights legislation. The 14 day right of withdrawal applies. This right of withdrawal cannot be waived. In particular any terms of contract that attempt to do so or try to limit the consumer's right to return within 14 days any remaining amount of unspent virtual currency are called out explicitly as advised against.
   
5. And the big one:
   Any gameplay mechanics that have the object or effect of exploiting emotional, psychological or other weaknesses consumers may have to try and push them to spending in unnatural ways, explicitly called out with the terms 'whaling' and 'whales' gamers are familiar with, are deemed in violation of the unfair commercial practices directive.

The CPCN is basically the joint body of enforcing authorities for consumer rights and the consumer market, similar to how the European Data Protection Board (EDPB) is the joint body of enforcing authorities for the GDPR.

In short, the EU is calling open season on gacha, lootboxes and freemium scumbaggery at last.

Makes me wonder how this will reflect on games on Steam.
Probably going to be a bit of a culling in the freemium segment.



[EDIT]
Also, on a humorous note: there's a small win for the Stop Killing/Destroying Games initiative in there as well.
It is the position of the EU Commission and the CPCN that you 'own' your in game purchases, in the sense that you have a right to access and use that content, which cannot be unilaterally taken away.

[Boblin the Goblin]

Diposting pertama kali oleh Ben Lubar:

Diposting pertama kali oleh Pierre_The_Scumbag:

Yeah what they are saying here is, if you sell, as currency in your game "Magic Diamonds" in packs of 20 for $5, but everything in the cash shop costs 15, you are left with 5 over.

They cant do that form of manipulation any more.

If I go to buy something from the Steam Marketplace that costs $0.03, the minimum I can add to my wallet is $5.00. There may be a difference in intent, but there's not a difference in what transaction is occurring.

They aren't having you buy a currency. It's not different than a digital gift card.

That's all you're doing, adding money to a gift card. There is no currency conversion.

[Ben Lubar]

Diposting pertama kali oleh Boblin the Goblin:

Diposting pertama kali oleh Ben Lubar:

If I go to buy something from the Steam Marketplace that costs $0.03, the minimum I can add to my wallet is $5.00. There may be a difference in intent, but there's not a difference in what transaction is occurring.

They aren't having you buy a currency. It's not different than a digital gift card.

That's all you're doing, adding money to a gift card. There is no currency conversion.

I'm converting money to store credit. That's how buying Platinum in Warframe or Gems in Guild Wars 2 works as well.

[Boblin the Goblin]

Diposting pertama kali oleh Ben Lubar:

Diposting pertama kali oleh Boblin the Goblin:

They aren't having you buy a currency. It's not different than a digital gift card.

That's all you're doing, adding money to a gift card. There is no currency conversion.

I'm converting money to store credit. That's how buying Platinum in Warframe or Gems in Guild Wars 2 works as well.

It isn't the same.

You are putting money on a digital gift card. No different than buying a Steam gift card in the store and typing it into your account.

Again, there is no currency conversion. It's still USD. It isn't converting into anything.

[Boblin the Goblin]

Diposting pertama kali oleh Pierre_The_Scumbag:

Diposting pertama kali oleh Ben Lubar:

I'm converting money to store credit. That's how buying Platinum in Warframe or Gems in Guild Wars 2 works as well.

Yeah so I'm not sure about Warframe, but GW2 will have to remove gem's sold in specific quantities and have fixed price per gem and allow the end user to purchase the exact amount they need.

Warframe has the same bundle stuff just with Platinum(I think that's what it's called). So it's still a conversion.

[Ben Lubar]

Diposting pertama kali oleh Boblin the Goblin:

Diposting pertama kali oleh Ben Lubar:

I'm converting money to store credit. That's how buying Platinum in Warframe or Gems in Guild Wars 2 works as well.

It isn't the same.

You are putting money on a digital gift card. No different than buying a Steam gift card in the store and typing it into your account.

Again, there is no currency conversion. It's still USD. It isn't converting into anything.

Let's put this in another context. In Guild Wars 2, gems cost $0.0125 each. Normally the smallest amount of that currency you can buy for real money is 400 gems for $5.

Let's say someone wants to buy a Merchant Express for 35 gems. That's a little less than 45 cents. Are ArenaNet now forced to do a $0.45 credit card transaction?

Let's say I want to rush-build a Cipher in Warframe. Does Digital Extremes need to do a credit card transaction for $0.054?

[shado]

I can't believe EU killed counter strike.

[RiO]

Diposting pertama kali oleh Boblin the Goblin:

Diposting pertama kali oleh fluxtorrent:

No because it's not a virtual currency to begin with

That actually brings up another interesting point.

Companies can just allow direct loading onto the service like a digital gift card which would completely invalidate this whole thing.

That is correct. They could allow you to load up electronic vouchers into an account, which directly connect to a real-world currency. Similar to what Steam Wallet funds are.

In doing so those companies would lose the psychological benefits of virtual in-game currencies serving as a disconnect between purchased in-game items and their actual real world value, all the same.

They wouldn't need to also list the real-world equivalent value like this guidance document calls for; because they would already only be listing the real-world equivalent value.

However, the action points related to the principle of avoiding exploitative game mechanics would still be something these companies would be held to, regardless of switching away from the in-between virtual currency or not.

[Wolfpig]

You guys realize that the linked document is just a paper in which the part who wrote it is saying how they want that stuff to be handled, not something which is brought out to be a general law?

And even if that would be made into EU Law 1 to 1 it still would take years before the eu "government" decides that, and a few more years until all EU countries put that as a local law out...

[RiO]

Diposting pertama kali oleh Ben Lubar:

Diposting pertama kali oleh Boblin the Goblin:

It isn't the same.

You are putting money on a digital gift card. No different than buying a Steam gift card in the store and typing it into your account.

Again, there is no currency conversion. It's still USD. It isn't converting into anything.

Let's put this in another context. In Guild Wars 2, gems cost $0.0125 each. Normally the smallest amount of that currency you can buy for real money is 400 gems for $5.

Let's say someone wants to buy a Merchant Express for 35 gems. That's a little less than 45 cents. Are ArenaNet now forced to do a $0.45 credit card transaction?

Let's say I want to rush-build a Cipher in Warframe. Does Digital Extremes need to do a credit card transaction for $0.054?

Swap out the $ for € but otherwise - yes.
In such cases the regulation on SEPA (single euro payments area) payments which governs all debit and credit transactions in euros forbid surcharges for the use of most types of consumer debit or credit card. A few exceptions apply, in which case the maximum surcharge is limited to the transaction fees of the most cost-efficient comparable payment service provider the merchant has available. Basically: they can surcharge as much as they would lose in transaction fees had the end-user opted to use the payment method for which those transaction fees would be lowest.

Diposting pertama kali oleh Wolfpig:

You guys realize that the linked document is just a paper in which the part who wrote it is saying how they want that stuff to be handled, not something which is brought out to be a general law?

And even if that would be made into EU Law 1 to 1 it still would take years before the eu "government" decides that, and a few more years until all EU countries put that as a local law out...

This guidance document is how the EU Commission and the CPCN will interpret the existing body of legislation as it applies to the topic of virtual currency and the exploitation thereof in video games.

It's similar to ♥♥♥♥♥♥♥♥ guidance documents put out by other enforcing authorities such as the EDPB and the national authorities it is composed of, that are vested with the enforcement of the GDPR.

Basically, it's a manual that states: handle things this way, and we won't have grounds to fine you. Handle things explicitly counter to this way, and we will have grounds to fine you.

The CPCN is a similar body to the EDPB: it's composed of the national authorities vested with the enforcement of consumer rights legislation.

When I wrote the EU is "outlawing" lootbox and gacha games and is declaring "open season" on them, I meant that not in the way of these practices being made illegal through new legislation. I meant that in the way of: they're giving a sign that these practices were deemed already illegal, and that now they've actually taken notice and will start enforcing.
This is basically their "you've got a 5 minute head start; better start running"

[Wolfpig]

Diposting pertama kali oleh RiO:

I meant that in the way of: they're giving a sign that these practices were deemed already illegal, and that now they've actually taken notice and will start enforcing.
This is basically their "you've got a 5 minute head start; better start running"

If that would be the case it would change absolutely nothing, as that stuff would have been enforced and not just "now" .

And even if they would "starting to enforce those "rules"", a lot of those most likely still would needed to be converted into national law of the EU Member countries (if those EU Laws shall be set in all countries)....which will take time.

Heck, there are EU Laws out there which (should) have come into effect years ago and are still not set as national laws in some of the EU Member Countries.

[Mad Scientist]

Diposting pertama kali oleh Wolfpig:

You guys realize that the linked document is just a paper in which the part who wrote it is saying how they want that stuff to be handled, not something which is brought out to be a general law?

Not the first time someone posted essentially a "guidance" and hopes it would become law. Last time, it didn't seem to.

Diposting pertama kali oleh Wolfpig:

And even if that would be made into EU Law 1 to 1 it still would take years before the eu "government" decides that, and a few more years until all EU countries put that as a local law out...

It would also open up a lot Devs/Publishers could do as a consequences for the member states involved or the entire eu especially for long running games that utilize cosmetics/optional goods for upkeep of the game servers. Some games have shutdown all service to regions before, for having too much upkeep compared to income. Likely wont go the way they think it will.

[HikariLight]

Every time I turn around the EU gets more and more anti-business.
It's going to reach a breaking point to where businesses will pull out of the EU due to being forced to give their stuff away for free because of how overly pro-consumer the EU is getting.

[Tito Shivan]

Diposting pertama kali oleh RiO:

This is basically their "you've got a 5 minute head start; better start running"

More like a 5 years head start.

[T9]

EU is the light

[HikariLight]

Diposting pertama kali oleh T9:

EU is the light

The EU is going to run all non EU businesses out of the EU.
The EU is so consumer focused that the businesses are going to leave due to little to no profit or rights.