EU CPC Network Launches Virtual Currency Probe Into Mobile

The Consumer Protection Cooperation Network has launched coordinated scrutiny of major game companies over compliance with its Key Principles on in-game virtual currencies. The CPC Network, a body of national authorities enforcing EU consumer law, has formally contacted Activision Blizzard, Crytek, InnoGames, King, Mojang, Plarium, PLR Worldwide Sales, Riot Games, Supercell, and Ubisoft. The action examines how virtual currencies are sold within their games.

Games under assessment span genres and platforms

The investigation targets a selection of popular titles chosen for their broad audience and cross-device availability. The games being assessed include:

Regulators selected these titles due to their wide reach, varied age ratings, and accessibility across devices. These factors amplify the potential impact of commercial practices on consumers.

Core principles focus on transparency and fairness

The 'Key Principles' for virtual currencies, announced last year, form the basis of the assessment. They call on publishers to display the real-world cost of microtransactions clearly. Companies must provide transparent pricing and pre-contractual information. The principles prohibit hiding costs through complex currency exchanges or forcing unwanted currency purchases. Gamers should not feel obliged to buy excessive virtual currency to progress or enjoy a game.

Other requirements include respecting the statutory 14-day right of withdrawal for contracts, including for unused virtual currency. Games' terms and conditions must be fair and clear. Particular attention is paid to protecting vulnerable consumers, especially children. Companies must ensure appropriate safeguards are in place.

Industry pushback and regulatory history

This enforcement move follows years of dialogue. After publishing the Key Principles, the CPC Network and European Commission invited the industry to present concrete compliance actions. Discussions did not yield a satisfactory outcome. A high number of games companies have not made substantive changes to their titles following the public guidance or extensive talks. The action signals a shift from guidance to potential enforcement after previous discussions failed to deliver the changes regulators sought.

Officials stress fairness and future impact

Regulators warn that failure to address concerns could lead to enforcement measures by national authorities. The CPC Network stated it will continue to take joint enforcement actions where appropriate to address non-compliant practices under EU consumer protection legislation. Michael McGrath, Commissioner for Democracy, Justice, the Rule of Law and Consumer Protection, emphasized the need for fairness. "The game must be fair, and the rules must be respected. National authorities, with the support of the Commission, will make sure they are enforced," McGrath said.

The CPC intends to set a precedent. Because the Principles align with the upcoming Digital Fairness Act, this precedent could influence the law itself. The network seeks to foster a vibrant and competitive European video game market while ensuring consumer rights are protected. It remains committed to this goal, with particular attention on children and vulnerable groups.