European consumer authorities are investigating nine gaming companies over concerns that virtual currencies may breach EU consumer protection rules.
WEB DESK: European consumer authorities have opened coordinated investigations into nine video game companies over concerns that their use of in-game virtual currencies may breach European Union consumer protection law.
The investigations, announced by the European Commission on Wednesday, are being coordinated through the Consumer Protection Cooperation (CPC) Network, which brings together consumer authorities from the EU’s 27 member states.
Nine companies under investigation
The companies involved include Ubisoft, Mojang, Riot Games, Supercell, Crytek, InnoGames, Plarium Europe, PLR Worldwide Sales and King.com.
The games identified for further scrutiny include Candy Crush Saga, Minecraft, Clash of Clans, Valorant, For Honor, Gardenscapes, Forge of Empires, Hunt: Showdown 1896 and Mech Arena.
The authorities will examine whether commercial practices involving virtual currencies comply with EU consumer law.
Concerns over virtual currency pricing
Under EU guidance, games using virtual currencies should clearly communicate the real-world price of digital items and currencies.
Authorities are also examining whether players receive sufficient information before making purchases and whether game companies use practices that could pressure users into unwanted transactions.
The EU says consumers should also be informed about their rights, including the possibility of withdrawing from certain contracts within 14 days, including purchases involving unused virtual currency.
Children among key consumer concerns
The European Commission has placed particular emphasis on protecting children and other potentially vulnerable players from unfair commercial practices.
EU consumer protection chief Michael McGrath said the gaming industry must ensure that games do not expose players, particularly children, to harmful or unfair practices.
The investigations follow earlier discussions between consumer authorities and the companies. The European Commission said those talks did not produce satisfactory results, leading authorities to launch further coordinated action.
Wider EU push for digital consumer protection
The latest investigations form part of a broader EU effort to strengthen consumer protection in the online gaming sector.
The European Commission has already issued principles covering transparency and fairness in the use of in-game virtual currencies. Separately, the EU is working on the proposed Digital Fairness Act, which is expected to introduce additional consumer protection rules covering digital services, including the video game sector.
The investigations do not establish that the companies have violated EU law. Authorities will assess the practices and determine whether further enforcement action is required.
