EU KIDS Act draft targets online game
A draft EU law proposes new restrictions for online games, including potential bans on login bonuses and stricter rules for player communication and
The European Commission has published a draft for the proposed EU KIDS Act, a regulation that would introduce significant new restrictions for online games sold in the EU. While some of its most controversial age-based bans target social networks, several provisions directly apply to online gaming services.
According to an analysis by Dr Andreas Lober, a partner at law firm ADVANT Beiten, the rules could cover a broad range of games. This includes everything from platforms like Roblox to the multiplayer modes of disc-based titles, if the law is approved by the European Parliament and member states.
Targeting engagement features
The draft law states that providers of online games must ensure they do not encourage excessive use by minors. This provision takes direct aim at common player retention mechanics. Features like daily login bonuses or systems that penalize players for not playing by removing benefits could be prohibited.
Dr Lober notes that while there might be a compliant way to implement such features, the draft text clearly views them unfavorably. These mechanics have recently gained relevance in age rating systems like PEGI and USK, but the KIDS Act proposal is described as less nuanced. This could pose particular challenges for games built around persistent online worlds.
Communication and parental controls
Another key rule requires restrictions on contact between minors and other users. To meet these new obligations, online game providers would generally need to implement parental controls and age assurance solutions.
The analysis suggests these requirements may not apply to titles that lack features deemed problematic for children. The proposed rules for games are also noted as being less strict than those planned for social networking services.
Virtual currency and loot box transparency
The draft Act revisits a longstanding industry concern: transparency around in-game spending. It states that minors playing online games should benefit from clarity regarding the real monetary value of transactions made with virtual currencies and variable reward systems. The latter phrase is widely interpreted as referring to loot boxes.
However, Dr Lober points out a contradiction in the current draft text. For games, this transparency principle appears only in the recitals, which explain the law's reasoning, and not in the operative legal text. The binding economic transaction rules are expressly limited to online social networking and video-sharing platforms.
This omission leaves it unclear whether it is a drafting oversight or a deliberate choice. It may indicate an intent to address monetisation transparency for games through a separate code-of-conduct mechanism, which itself is only referenced in the recitals on this topic.
A directly applicable regulation
The KIDS Act is designed as a regulation, meaning it would apply directly across EU member states without requiring national implementation laws. The published text is a draft proposal and is not final. It must still undergo the legislative process, gaining approval from both the European Parliament and the EU member states before it could come into force.
The draft also includes provisions for codes of conduct related to age ratings and online games. While referencing the existing PEGI system, the proposed Act would create a more binding legal framework that goes beyond current voluntary agreements.
